Chinese Leader Xi Jinping Calls for Patience Amid Economic Slump
BEIJING (AP) — Chinese leader Xi Jinping has called for patience in a speech released as the ruling Communist Party tries to reverse a deepening economic slump and said Western countries are “increasingly in trouble” because of their materialism and “spiritual poverty.”
Xi’s speech, published by Qiushi, the party’s top theoretical journal, comes as China struggles to combat a weakening economy. Despite official promises to support struggling entrepreneurs, data released on Tuesday showed a further decline in consumer and factory activity in July. Notably, the government chose to skip providing an update on the politically sensitive issue of rising unemployment among young people.
As China’s most powerful leader in decades, Xi emphasized the need for China to “build a socialist ideology with strong cohesion” and shift its focus towards long-term goals such as improving education, healthcare, and food supplies for the country’s vast population, rather than solely pursuing short-term material wealth.
Since assuming power in 2012, Xi has been determined to restore the ruling party’s position as an economic and social leader. This has led to increased control over businesses and society, including the implementation of data security and anti-monopoly crackdowns that have significantly impacted the stock market value of successful Chinese companies.
“We must maintain historic patience and insist on making steady, step-by-step progress,” Xi stated during the speech, which was delivered in February in Chongqing. It is worth noting that Qiushi frequently publishes speeches several months after their delivery.
China’s economic growth has been steadily declining, with a 0.8% slide in the three months ending in June compared to the previous quarter. This represents a 3.2% annual rate, one of the country’s weakest in decades.
Additionally, a survey conducted in June revealed a record-high unemployment rate of 21.3% among urban workers aged 16 to 24. However, the statistics bureau has announced that it will withhold updates while refining its measurement methodology.
The Chinese government has also tightened controls on information and expanded anti-spying rules, leaving foreign and private companies uncertain about permitted activities.
Xi emphasized the concept of “common prosperity,” a slogan from the 1950s that he has recently revived. He called for narrowing China’s wealth gap between the elite and the majority of the population and expressed the need to “regulate the healthy development of capital.” However, no new initiatives were announced during the speech.
Xi stated that “common prosperity for all people” is a crucial aspect of Chinese-style modernization, distinguishing it from Western modernization. He criticized the Western approach for prioritizing the maximization of capital interests over serving the majority, claiming that Western countries are encountering increasing difficulties due to their inability to curb the greed of capital and address chronic issues such as materialism and spiritual poverty.