Call for patience, anti-West rhetoric: What Xi Jinping said amid deepening economic crisis in China – Times of India
NEW DELHI: China’s economy is going through rough waters amid a deepening debt problem and an ominous property bubble. As the ruling Communist Party takes efforts to reverse the economic slump, Chinese president Xi Jinping has called for “patience” in a recently released speech that was also peppered with stark criticism of the “capitalist” Western nations.
Here are 10 things to know:
- Chinese President Xi Jinping’s speech, published in the party’s Qiushi journal, came just hours after data revealing a decline in consumer and factory activity in July, despite commitments to aid struggling businesses. The government avoided addressing a concerning increase in unemployment among young individuals.
- “We must maintain historic patience and insist on making steady, step-by-step progress,” Xi said in the speech. Qiushi said the speech was delivered in February in the southwestern city of Chongqing. It is common for Qiushi journal to publish speeches months after they are delivered.
- In the speech, Xi lambasted the Western countries, which he said are “always in trouble” due to their materialism and spritiual poverty. “Western-style modernization pursues the maximization of capital interests instead of serving the interests of the vast majority of people,” Xi said.
- The speech highlighted the need for a strong socialist ideology, emphasizing long-term goals focussed on education, healthcare and food supplies for China’s population over short term gains.
- Since coming to power in 2012, Xi has aimed to restore the Communist Party’s leadership in economics and society and tighten control over businesses through data security measures and anti-monopoly crackdowns.
- During the quarter ending in June, economic growth lowered to 0.8% compared to the previous quarter’s 2.2% growth in January-March. This translates to an annual rate of 3.2%, a level of growth that would rank among China’s most sluggish in many years.
- A survey revealed in June that the unemployment rate among urban workers aged 16 to 24 had surged to an all-time high of 21.3% after which the statistics bureau announced that it would temporarily suspend updates on this data as it works to redefine its measuring criteria.
- The Chinese government also aims to reassure anxious homebuyers and investors following the payment default by major developer Country Garden, emphasizing that debt is being managed and risks will be addressed gradually.
- Additionally, Beijing’s recent actions including both strengthening anti-spying regulations and imposing stricter information controls led to uncertainty among foreign and private companies regarding permissible activities.
- In his speech, Xi stressed the concept of “common prosperity,” reviving a slogan from the 1950s and called for reducing the significant wealth disparity in China between a small elite and the larger impoverished population. He also emphasized “regulate the healthy development of capital” but announced no new initiatives.
(With inputs from AP)
