Analysis-Unleashing reforms, Xi returns to China's socialist roots
Send a link to a friend
[September 09, 2021]
By Yew Lun Tian
BEIJING (Reuters) - When Xi Jinping took
command of the Communist Party in late 2012 and proclaimed "only
socialism can save China", it was largely ignored as the perfunctory
mention of an antiquated slogan - not to be taken literally in a
modern-day, market-powered economy.
But sweeping new policy moves - from crackdowns on internet companies,
for-profit education, online gaming and property market excesses - to
the promulgation of "Common Prosperity", show Xi's seriousness in
steering China back towards its socialist roots.
Having done away with term limits in 2018, China's most powerful leader
since Mao Zedong is pushing what some observers describe as a mini
"revolution", curbing the excesses of capitalism and shedding negative
cultural influences of the West.
The effort, touching everything from school curriculums - including the
newly required study of "Xi Jinping Thought on Socialism with Chinese
Characteristics" - to tighter regulation of the property sector and a
squeeze on what the government sees as unwholesome entertainment, has
rattled investors and prompted officials and state media to try to
assuage markets.
On Wednesday, for example, the official People's Daily sought to
reassure the private sector that support for it "had not changed":
recent regulatory actions were meant to "rectify market order", promote
fair competition, protect consumer rights and "perfect the socialist
market economy system".
But the intent, observers say, is clear.
"Xi wants to address a very contemporary issue, the way in which
neoliberal reforms have made China much less equal, and bring back the
sense of mission that shaped early Maoist China," said Rana Mitter, a
professor of Chinese history and politics at Oxford University.
That inequality, as well as the vast wealth and power accumulated by
some industries, threatened to undermine social stability and ultimately
the party's legitimacy if left unchecked, some analysts said.
The timing of the reforms reflects confidence that China can solve its
problems through its own hybrid system instead of following the model of
the West, whose shortcomings - from managing COVID-19 to the chaos of
the U.S. election and withdrawal from Afghanistan - are repeatedly
depicted in China as evidence of systemic decay.
"The state control model did seem to serve China well in the fight
against COVID," said Chen Daoyin, a political commentator who is based
in Chile and was formerly an associate professor at Shanghai University
of Political Science and Law.
Xi is confident of striking a balance between government and markets,
and between power and capital, Chen said.
"The danger is when the state can't resist reaching out its visible hand
... it creates unpredictability and political risk for capital," Chen
said.
The Hong Kong market, where many Chinese tech firms targeted by the
crackdown are listed, has lost over $600 billion in value since July,
with investors whipsawed by new regulations and scouring old speeches
for clues as to what may be coming.
Xi's activist populism also demonstrates confidence that he can afford
to alienate elites who fall on the wrong side of his policies as he
solidifies his case for a third five-year term - not that there is any
visible competition.
[to top of second column]
|
A screen shows Chinese President Xi Jinping during a show
commemorating the 100th anniversary of the founding of the Communist
Party of China at the National Stadium in Beijing, China June 28,
2021. REUTERS/Thomas Peter
But his calculus goes even beyond that, analysts say.
"Xi is an ambitious leader with a grand vision who genuinely wants
to go down in history as the man who saved the party and made China
strong," said Yang Chaohui, a lecturer in politics at Peking
University.
China's State Council Information Office did not immediately reply
to a request for comment.
MR. FIX-IT?
Under Mao, the earliest iterations of party doctrine aspired to free
people from the exploitation of capital, destroy private ownership
and defeat American imperialism.
Deng Xiaoping, Mao's successor, took a pragmatic turn, allowing
market forces to incentivise production and unleashing four decades
of breakneck growth that fuelled massive wealth accumulation - but
also deep inequality.
This summer's reforms are enabled by Xi's consolidation of control
since taking office: he unleashed a massive anti-corruption
campaign, eliminated space for public dissent, and reasserted
Communist Party power - with himself at the "core" - across all
aspects of society.
With that power, Xi is addressing a spate of societal woes, from
people not having enough babies and an unhealthy obsession with
educational achievement to young adults so stressed by the rat-race
that they would rather drop out and "lie flat". New rules curb young
people spending too much time playing online games and too much
money promoting their idols.
"Xi has set out to tackle the problems that cause anguish for the
common people, such as corrupt officials and the rich-poor gap,"
said Chen.
While many in China express scepticism that Beijing can get people
to have more babies or make big-city housing more affordable, some
of the moves appear popular: many parents welcome an easing of the
educational burden and the new three-hour-per-week time limit for
children to play online games.
"Championing the common people gives him a moral high ground to
consolidate his authority within the party and makes it hard for his
political opponents to attack him. After all who can be against
social equality?"
(Reporting by Yew Lun Tian; Editing by Tony Munroe and Lincoln
Feast.)
[© 2021 Thomson Reuters. All rights
reserved.] Copyright 2021 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content. |