In his article, Xi Jinping revealed that the reason for promoting “double circulation” was because people and goods could not get in, could not get out, and had to stop work and production, so he proposed a new idea.
Faced with the double blow of the U.S.-China trade war and the Chinese Communist Party’s virus epidemic, Xi Jinping has repeatedly stressed the need to build a “new development pattern of domestic and international double-circulation. In an article published in the latest issue of the Chinese Communist Party magazine in May, Xi revealed that the reason for promoting the “double cycle” was that domestic goods could not leave China, and overseas people and goods could not come to China, so production had to be halted and a new idea was proposed.
Xi Jinping’s article, published in the Communist Party magazine “Seeking Truth,” was a speech Xi gave at a seminar for major provincial and ministerial-level cadres on Jan. 11, describing his views on the domestic and international situation and the latest developments in China’s economy.
In the article, Xi described the main characteristic of the world today as the word “chaos”, and this trend seems to continue. In the light of the global epidemic, Xi believes that the leadership and institutional superiority of each country is a high and low point.
Xi concluded that “time and trend” are on the side of the CPC, and said that this is where the CPC’s so-called determination and backbone lie, as well as its so-called determination and confidence.
However, financial expert and senior media personality Huang Shicong previously analyzed that the world situation has long been different from the past, and anti-communist has become a consensus, plus the effect of the Communist Party’s infiltration and money bribery has been extremely limited in the current international community, Xi Jinping’s statement is only the Communist Party’s perspective on things, which is completely different from the thinking of normal countries, and has led Xi to misjudge the world situation.
Xi Jinping also revealed in the article that he visited Zhejiang during the Communist virus epidemic and found that “a local break in the supply chain of the global industrial chain under the impact of the epidemic has directly affected our domestic economic cycle. Many local enterprises need foreign raw materials can not come in, overseas personnel can not come, goods can not go out, had to stop work and production”.
It is in this context that Xi Jinping repeatedly proposed to establish a new development pattern with a major domestic cycle and a dual domestic and international cycle to promote each other, and made it the strategic layout of the Fifth Plenary Session.
In early 2020, when China’s economy was in a serious predicament due to the deterioration of U.S.-China relations and the continuing epidemic, Xi Jinping proposed an “internal economic circulation” policy in April of the same year, which was seen by outsiders as a prelude to a closed-door policy.
In mid-May, the Communist Party of China (CPC) held a standing committee of the Politburo and proposed for the first time “to build a new development pattern with a dual domestic and international cycle to promote each other”.
In July, Xi Jinping chaired a forum for entrepreneurs and proposed “gradually forming a new development pattern with the domestic cycle as the main body and the domestic and international cycles promoting each other”.
In early September, Xi Jinping held the 15th meeting of the Central Committee of the Communist Party of China to deepen reform, also stressed the need to accelerate the formation of the “domestic cycle” as the main body, the domestic and international “double cycle” to promote each other’s new development pattern.
But “double cycle” is easier said than done. The top echelons of the Chinese Communist Party have to admit that the people are “not willing” to spend money, which makes them hurt their brains.
Qian Keming, vice minister of the Ministry of Commerce, said in a speech at the Chinese People’s Political Consultative Conference that efforts should be made to solve the problem of “having money to spend, daring to spend, wanting to spend, spending with confidence, and spending reasonably” to provide impetus for the formation of a strong domestic market.
According to the data provided by Li Keqiang, there are 600 million people in China with a monthly income of less than 1,000 yuan, and 360 million people with a monthly income of 1,000 to 2,000 yuan, according to the analysis of economist Yang Shaozheng to Free Asia, the key factor is whether the Chinese people have money. These people only have enough for basic and simple needs, and there is no problem of under-consumption.
Zheng Zhongyuan, a columnist for Look at China, said that Xi Jinping repeatedly mentioned “internal circulation” and later “double circulation, internal circulation” as the mainstay, which in the end mainly relies on domestic consumption. But now the people have been emptied of their savings by the house, especially in the epidemic, can only maintain a minimum living, where can they have money to spend?
Wu Mingde, a former senior vice president of Bank of America, also told Apple Daily that “internal circulation” means self-reliance, and he believes that if “internal circulation” fails to earn foreigners’ money, the economy of the Communist Party of China will inevitably plummet, and the living standard of Chinese people will also drop significantly. Chinese people may not starve to death in the future, but they will probably die of poverty.
He described the “double cycle” as a path of no return, and that in the future, no one in China will be able to earn money, so the authorities will close their doors and engage in struggles to divert attention. If the economy does not work well, Xi Jinping will face the danger of stepping down.
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