Chinese dictator Xi Jinping called for innovative solutions to China’s deepening economic crisis in remarks Tuesday and Wednesday, calling for a “rush into projects” that could lead to the “abandonment of traditional industries”. He warned of the formation of an industry bubble.
Mr. Xi attended the “two meetings” currently being held by China’s rubber-stamped legislative bodies, the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CHK). The National People’s Congress can draft and pass laws but is completely dependent on the leadership of the Communist Party elite, whereas the CPPCC is essentially an advisory body and has no real powers.
The annual “two sessions” began on Monday and focused on rebuilding China’s struggling economy. China recorded its first-ever decline in foreign direct investment in November, recording a decline of $11.8 billion in the fiscal quarter ending September. This is due in part to the growing real estate crisis, rising youth unemployment and heightened risk awareness. Dealing with a genocidal, totalitarian Communist Party. The decline in China’s status as a major investment destination is partly at the expense of India, which has aggressively courted China-based multinationals and is struggling to succeed due to China’s “zero-corona policy.” It is contained.
The most fervently touted solution to China’s economic woes is its self-proclaimed “new, high-quality productive capacity.”buzzword” A technological innovation aimed at creating an entirely new industry dominated by Beijing.propaganda video published by the state news agency Global Times He said “new quality productivity” is an answer to “what China is doing to address various challenges” and is defined as “high productivity guided by innovation.”
President Xi reportedly “emphasized” the pursuit of “new high-quality productive forces,” but unlike much of the propaganda in state media promoting this concept, these potentially lucrative fields are , stressed that this cannot be achieved at the expense of productivity in economic sectors. It actually exists today.
“Xi called on China to focus on high-quality development as a top priority, and urged efforts to strengthen innovation and foster emerging industries,” Chinese government news agency Xinhua said. relayed“Adopt advanced plans to develop future-oriented industries and improve modernized industrial systems.”
Xi made the remarks Tuesday at a session of the National People’s Congress, the more powerful of the two legislative bodies.
However, the dictator reportedly added that “the development of new, high-quality productive forces does not mean neglecting or abandoning traditional industries.”
“We need to avoid rushing into projects, preventing the formation of industry bubbles, and avoiding adopting only a single development model,” Xi said.
“We must prevent a local rush and oppose irrational and blind investments that create bubbles,” he said. South China Morning Post Quote He says: “Promoting new productive forces does not mean ignoring or abandoning traditional industries.”
Among the traditional industries and economic engines that President Xi specifically mentioned as needing to be improved are “property rights protection, market access, fair competition and social credit to build a high-standard socialist market economic system.” was included.
The reference to “property rights protection” appeared to be a vague acknowledgment of the widespread protests that rocked China in 2022 following the collapse of giant real estate developer Evergrande. Evergrande’s value plummeted before it was ordered into liquidation in January, leaving it with $300 billion in debt. Families who had taken out mortgage loans or signed contracts with Evergrande to build new homes were left stranded without access to funds. January 2022, protesters A storm has come Evergrande’s Guangzhou office demands refund for failed project. Human rights organization Freedom House has recorded that real estate-related protests will remain a significant source of social unrest in 2023.
Mr. Xi also appeared to mention the flight of foreign direct investment on Tuesday.
“It is also important to promote a market-oriented, law-based, internationalized and world-class business environment, and create new strengths for a higher standard of open economy,” Xinhua said, paraphrasing the dictator’s remarks. requested. “Decisive action to correct pointless procedures and bureaucratic practices”
Xi Had made Xinhua News Agency’s report showed that his attendance at the CPPCC meeting on Wednesday did not provide any substantive advice to the meeting other than to enthusiastically participate in the summit.
According to Xinhua News Agency, President Xi “urged various political parties, organizations, ethnic groups, sectors, and political advisors from all walks of life to conduct thorough research and actively make proposals based on key strategic issues.” “He did,” Xinhua News Agency reported.
The Chinese government, in collaboration with National People’s Congress members, announced that it would set an official GDP growth target of 5% for 2024, which is only slightly lower than the 2023 target of 5.2%. This target is lower than the International Monetary Fund (IMF) forecast. ,Currently project By the end of the year, it will increase by 4.6%. In a February report, the IMF said China’s failure to address “vulnerabilities in its key real estate sector” was a major problem.
“Many developers have become insolvent, but have been able to avoid bankruptcy thanks in part to rules that allow lenders to delay recognition of bad debts. IMF said. I got it.. “Housing prices have also declined only slightly, in part because some cities are trying to limit price declines through list price rules and guidelines.”
