Chinese Premier Li Keqiang announced that China’s GDP growth target for this year is set at more than 6% during the reading of the Government Work Report at the 4th Session of the 13th National People’s Congress. Xia Yeliang, a former associate professor at Peking University’s School of Economics who now lives in the United States, told Voice of Hope in an interview that there are three key economic points to observe and be intrigued by at this year’s session.
Xia Yeliang talked about three key points of the two sessions. First of all, the GDP growth target proposed by the Chinese Communist Party this year is set at 6% or more, which gives people the impression that it is to achieve a certain political purpose, because in the past few years, the GDP of the Chinese Communist Party has been deteriorating, from 6% and 5% to 4% according to internal scholars.
So this should be a step down every year, but now after a year of Epidemic, it’s back to the high end of the range, back to the target of 6%, which is obviously not in line with China’s current economic situation. But now they emphasize the “internal circulation”, that is, basically with the United States, and some of the Western countries trade exchanges have been greatly restricted, restricted, the scope is greatly reduced, whether with the United States, or the United Kingdom, Australia, are narrowed, so I think this goal is proposed I think this goal is proposed to achieve a certain political purpose, but in fact in the economy is very reluctant, difficult to achieve, this is the first point.
Xia Yeliang refers to the second focus, is mentioned in the two sessions this year: a “six” and a “six stable”. He said in fact this is not the first Time to raise, in the last 2, 3 years often said, in the “six protection” among the special emphasis is the first three, the first is “to protect employment”, the second “to protect people’s livelihood “, the third “to protect the main market”. But this “market subject” is intriguing, in the end what is “market subject”?
The third key point Xia Yeliang observed is that by “market main body”, the Chinese Communist Party leader Xi Jinping actually means the state-owned economy. But if the state-owned economy is the main body of the market, it should contribute the most. But the funny thing is that for so many years, the contribution of the private economy is much higher than the state-owned economy, but in the speeches and plans of the national leaders, the state-owned economy is always put in the main position.
Recorded]: In the past, not many people argued that state-owned enterprises as their own direct line, their own biological children, while the private sector as adopted children, stepmother’s children, so the treatment itself is not the same. In other words, no matter how badly the state-owned economy does, it has to give the best resources, the most preferential policies to the state-owned economy, because he is his own son; then for the adopted son, that he said, no matter how well you do, I have to discriminate against you, or constraints, so that you can not occupy the position of the boss. So for many years, the Chinese Communist Party has been treating the Chinese economy in this way. He is different treatment, or say is discriminatory treatment, is to discriminate against private enterprises. The private economy is doing well, the owners of private enterprises are famous, but one day they will be unlucky, they will be jailed, and then the money, their hard-earned wealth kingdom will be confiscated by the state, this kind of example is not one or two cases, very many.
Xia Yeliang analysis, Xi Jinping said “to protect the main body of the market” the implicit line is to say: state-owned enterprises although its efficiency is not good, but the Communist Party as the state, as the government, must take out the best resources to save it, to ensure its survival. And if the private economy is not doing well, let it go bankrupt and collapse, and then the CCP will take over its property. That’s the kind of mentality they have.
[Recording]: And you see in the text of the report, there’s another interesting sentence. He said that in the last year, financial institutions and the financial system gave 1.5 trillion dollars to the real economy, which is very interesting. We know that in a free market economy, there is no reason for financial institutions to give away their profits to the real economy for nothing. For example, to a certain industry, to the manufacturing industry, or a certain enterprise, which is completely unexplained, only in the case of a planned economy, command economy may appear. So the same reasoning, will not appear in, is to let the private economy to the state-owned economy to give up? For example, we know that Ma Yun belongs to private enterprises, and many private entrepreneurs, if they have enough profits, is not the central government can be ordered to let them give profits to state-owned enterprises? If the state-owned enterprises are not operating well and losing money, then let those with good efficiency, those private enterprises one by one to give profit to state-owned enterprises? So this is a big question mark.
Xia Yeliang also said that China over the years, although nominally speaking in the “market economy”, but in fact is not the general understanding of the kind of market economy, so Xi Jinping’s words are very puzzling, he said the “market”, in fact, is not the real market. Xi Jinping said in the 18th National Congress that “the decisive role of the market should be brought into play”, but after so many years, we can see that Xi Jinping is engaged in an anti-market path, so in order to understand the CPC’s discourse system, we need to break away from the normal thinking and discourse in the universal sense and understand it in a specific context. For example, what the CCP says about “rule of law” is actually anti-rule of law; what the CCP says about “market” is actually anti-market; what the CCP says about “protection” and “stability” is actually “anti-market. Stability” is actually “unprotected” and “unstable”.
So Xi Jinping, who is wearing The Emperor‘s new clothes, has no sense of shame. He thinks the whole world can be fooled by him. The Chinese idiom is most appropriate for him, it is called “self-deception”, deceiving himself and others.