With Chinese President Xi Jinping eyeing a historic third term, the country, in a tactical move, has decided to temporarily suspend focusing on “common prosperity”, slapping penalties on tech behemoths and instead is scurrying to stabilizing the economy, which is under a lot of stress.
This comes as China’s economy is under a lot of strain due to oil and gas price hikes and disruption to the supply chain caused by the Ukraine conflict, and strict implementation of the zero-COVID policy.
In the run-up to the forthcoming 20th Party Congress, the Chinese Communist Party (CCP) is tactically moving away from its “common prosperity” policy as with the economic slowdown the country does not want to become a less attractive market for investors, as per reports.
As Xi prepares to get re-elected for a third five-year term later this year, he has attempted to portray China as more prosperous, influential, and stable under his rule.
The country’s officials who till a few months ago were ferociously advertising a new era of “Common Prosperity” slapping penalties on tech behemoths and wealthy celebrities have shifted their focus to keeping the economy stable and growing, for now.
The postponement is more of a tactical retreat than a complete abandonment of Xi’s plans, which the Chinese Communist Party continues to portray as a long-term goal.
It also serves political goals, such as bolstering public support for Xi’s leadership and promoting China’s centralized management system as superior to the West.
Beijing also sought to reassure stakeholders such as international investors that it was still open for business.
However, Beijing’s crackdown on the personal sector has continued to rattle traders both at home and abroad.
As China imposed strict lockdowns to combat COVID-19 outbreaks and Russia’s invasion of Ukraine raised commodity costs, confidence in China’s economic system has waned.
In order to secure his third term, Xi would be looking to not rock the boat on the economy too much, lest he draws China into a financial cesspool given the volatile economic situation worldwide.