China abandons ‘common prosperity’ plans as Xi Jinping seeks re-election: report

05 May 2022 06:13 STI

beijing [China]May 5 (NNA): As Chinese President Xi Jinping seeks a historic third term in power, officials in the country who only months ago fiercely heralded a new era of “common prosperity”, imposing sanctions on giants tech and wealthy celebrities, have shifted their focus to keeping the economy stable and growing, for now, according to a media report.
The Communist Party is now suspending its advertising campaign, the Hong Kong Post reported, saying Beijing is implying that Xi’s efforts to redistribute wealth have baffled the private sector, a mainstay of development and job creation when prospects China’s finances are bleak.
As Xi prepares to be re-elected for a third five-year term later this year, he has tried to portray China as more prosperous, influential and stable under his rule, according to the report.
Authorities have struggled in recent months to reverse a slowdown in development, which has been exacerbated by rising global oil prices, uncertainty over the conflict in Ukraine and Chinese lockdowns, which have included a relentless rise in coronavirus cases. , the report adds.
The postponement is more of a tactical retreat than a complete abandonment of Xi’s plans, which the Chinese Communist Party continues to tout as a long-term goal, according to the report.

Xi’s “common prosperity” marketing campaign is a pledge to close the country’s growing wealth gap and build a middle class that can boost domestic consumption and reduce dependence on poverty-fueled development. debt.
It also serves political purposes, such as boosting public support for Xi’s leadership and promoting China’s centralized management system as superior to the West, the report said.
Regulators had focused on what they called “the disorderly expansion of capital.” They cracked down on various businesses they saw as widening the gap between wealthy and low-income strata, such as after-school tutoring, online financial products and online shopping, the report said, adding that the strikes have erased more than USD 1 trillion less than the value of Chinese companies, forcing many to lay off workers and even file for bankruptcy.
Because the economy was slowing, the leadership of the social rally began signaling that the marketing campaign would be delayed, the report added, adding that the Politburo did not use the phrase “common prosperity” in its official summary when he met that month to decide. on financial priorities for 2022; instead, he emphasized stability as the top priority.
Beijing has also sought to reassure stakeholders such as international investors that it is still open for business, according to the report. However, Beijing’s crackdown on the personal sector continued to rattle traders both at home and abroad.
As China imposed strict containment measures to fight COVID-19 outbreaks and Russia’s invasion of Ukraine raised raw material costs, confidence in China’s economic system declined.
In order to secure his third term, Xi would seek not to rock the boat too much on the economy for fear of dragging China into a financial cesspool given the volatile economic situation around the world. (ANI)

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