In case you missed it, the Wall Street Journal features a great scoop written by veteran Chinese reporter Lingling Wei on its front page. It works under the title: “Xi Jinping” aims at Ren in Chinese capitalism, to the extent of Mao’s socialist vision. ?? In other words, Mr. Shi will go to Mao.
The pioneering market reforms of 40 years ago will be reversed. They were unleashed by the sinister Deputy Prime Minister, Deng Xiaoping, who, to some extent, modernized the economy of communist China and made it an economic competitor, even an economic opponent, of the United States.
Many of us watching China have seen this trend for a good many years. Mr. Xi has recently cracked down on business, stock market and successful wealthy entrepreneurs in China, and of course rotated free market democracy in Hong Kong. It’s aimed at Taiwan then,
The Wall Street Journal’s dispatch is the clearest report on Mr. Shi’s intentions. We’ll cover this, this evening and the coming days because it’s a big main story. Mr. Shi is campaigning against private enterprise. Roll back the development of communist China towards free market capitalism, and in effect reduce the way for market forces in China
This included attacks on private capital and taking at least 100 regulatory actions on the economy?? Prosecuting Alibaba, then angering public performances made by Tencent, Didi, Jack Ma Antet Group and other issues in the stock market. Mr. Xi singled out the Internet technology sector as being very large and powerful. All this has led to a trillion dollar devaluation of the Chinese market.
Mr. Xi wants more equality, a greater distribution of wealth, and a government-run economy. Essentially, Mr. Xi issued a declaration of war on behalf of his working-class followers against capitalism. He wants some kind of pure socialism as his goal.
This Chinese socialism will be placed under the sole control of the Chinese Communist Party. The deal may have been concluded on July 1 during the celebration of the centenary of Chinese communism, and Mr. Xi wore a Mao suit. Having said all that, somewhat tongue-and-cheek, but not entirely, I can’t help but wonder, What are the big differences between Mr. Xi’s and Biden’s economic policy?
After all, Mr. Biden is campaigning against private enterprise. He does not believe in market forces. He is trying to organize every nook and cranny in the economy. He constantly talks about the need for more equality. Redistribution of income and wealth is preferred. looks similar?
There are only two main differences I can find between Mr. Biden’s and Mr. Xi’s policies. First, Mister Xi has not raised taxes. And if Biden gets what he wants, the United States will impose much higher business and investment taxes than the communist giants. And secondly, Mr. Biden does not have a Mao suit. At least not yet.
President Biden doesn’t explicitly talk about socialism, but I’m with Newt Gingrich in characterizing Biden’s policies as big governmental socialism versus free enterprise capitalism. Seriously, the two presidents’ economic similarities should give everyone some food for thought. Of course, the biggest difference is systemic: America is a democracy, a free country. China certainly isn’t.
I have no idea what Xi Jinping’s return to Maoist socialism would mean for the first phase of the US-China Free Trade Agreement. I will point out that the Chinese negotiator, Liu He, the true market reformer, is on his way to retirement. Deputy Prime Minister Liu, befriend me during our business negotiations.
However, when Mr. Xi pulled DiDi’s $4.4 billion IPO in June in New York, Mr. Liu was criticized for not stepping in earlier. Then he was forced to go through what the Chinese call “self-criticism”?? Traditionally used by the Communist Party to discipline members. Self-criticism is a practice that Mao borrowed from Stalin and brought back into fashion in China by Mr. Shi.
So this may be the biggest difference between all the gentlemen. Biden is up. Self-criticism is not Mr. Biden’s long suit. He did not mention China in his speech today at the United Nations. I have no idea if he read, or even knew of, the Wall Street Journal story on the front page of Xi-Becoming Mao. Nor am I sure his top lieutenants will let him know.
However, one thing is certain: China’s transition from being a competitive adversary to a direct enemy. State-run economies under totalitarian regimes are the drink of witches. This is my reef.