The Economic Work Conference of the Central Committee of the Communist Party of China (CPC) recently proposed eight major tasks for next year, and Xi Jinping warned against anti-monopoly and disorderly expansion of capital. According to some scholars, China’s economy is plagued with problems such as real estate bubbles and invisible unemployment.
Xi Jinping presided over the annual economic work conference of the CPC Central Committee, which was held in Beijing from 16th to 18th. The conference set eight key economic tasks for next year, including strengthening national strategic science and technology forces, enhancing the independent and controllable capability of the industrial supply chain, adhering to the strategic base of expanding domestic demand, comprehensively promoting reform and opening up, solving the problems of seeds and arable land, strengthening anti-monopoly and preventing the disorderly expansion of capital, solving the outstanding problems of housing in big cities, and doing a good job of “carbon da peak” and “carbon neutral”. “and carbon neutral.
The first two tasks include the implementation of key core technology research projects, solving a number of “neck problems” as soon as possible, and “refining and developing more unique skills” in areas of industrial strength.
Professor Emeritus Ding Shu Fan of National Chengchi University in Taiwan pointed out in an interview with Radio Free Asia that many key technologies in China are controlled by other countries, that is, they are “stuck”, especially the higher chips. This makes it difficult for China to develop in areas such as 5G and AI artificial intelligence. Therefore, Xi Jinping stressed self-reliance.
The Economic Work Conference of the Central Committee of the Communist Party of China pointed out that next year, we should continue to implement “active” fiscal policy and prudent monetary policy, maintain the necessary support for economic recovery, precise and effective, and not to make sharp turns.
Ding Shufan pointed out that mainland China’s monetary policy to be frank, is through the fiscal way to do investment: “In the past, called ‘iron and public infrastructure’, that is, railroads, highways, infrastructure construction is fully rolled out. But in 2008, the global financial crisis, Hu Jintao, Wen Jiabao era spilled four trillion yuan, many people estimate that two-thirds to three-quarters of the money ran to real estate, equivalent to speculation to do, really not much help to China. So Xi Jinping stressed not to spread across the board but selectively to put, such as investment in AI artificial intelligence, or 5G, etc., while on the one hand to fight housing, fiscal way to do a moderate deficit.”
China’s college graduates are increasingly difficult to find jobs, lurking unemployment rate black number into unexploded bombs?
The Chinese government’s unemployment rate has been increasing in recent years. Liu Mengjun said, China’s unemployment rate is estimated to be about 5%, an increase of about 1% compared to the pre-epidemic. But look at Europe and the United States often unemployment rate of more than ten, more than 20 percent, Xi Jinping stressed that the “six to protect the six stable” the first is “stable employment, employment”, said “employment is not stable without protection”. The people’s hand is tight, stimulating the expansion of consumption is not out.
Ding Shufan also said: “It is said that only a quarter of this year’s college graduates have found jobs. In the past, universities had a lot of state subsidies, but now the state subsidies to universities have become less, and universities have to take the recruitment of college students as a very important part of their income. Over the past two decades, China has been enrolling more and more college students, but the slowdown in economic growth has created a big problem for employment. Is it necessarily a quarter? I don’t know, but it’s true that the college employment rate is not good this year. I have asked the mainland students in Taiwan, they also said that it is more and more difficult to find a job.”
Ding Shufan said that China is like Taiwan in the past two decades, with rising labor costs, increased environmental requirements, out-migration of enterprises, oversupply of graduates, oversupply of manpower, and salary increases. Although unemployment figures can be “magic,” it will indeed be a problem for Xi Jinping.
The company’s business is a major player in the global economy, and it is a major player in the global economy. At present, there are rumors that different cities or neighborhoods are blocked due to the epidemic. On the one hand, the Chinese government is afraid of continuing monetary easing and financial stimulation due to the impact of the epidemic, and on the other hand, it is afraid of inflation after the epidemic, so it is facing a dilemma on how to deal with it.
“Strengthened anti-monopoly” swords pointed at the Internet
Xinhua News Agency reported on the 21st, the central economic work conference ten points of interest mentioned this year’s meeting has a number of new references, for example, for the first time proposed to “strengthen anti-monopoly and prevent the disorderly expansion of capital”. The content mentions that the state supports the innovative development of “platform enterprises” and enhances international competitiveness; at the same time, it should “regulate the development according to the law” and improve the number of rules; firmly oppose monopoly and unfair competition; and financial innovation must be carried out under the premise of prudential supervision.
In a separate article on the 18th, Xinhua News Agency reported that the meeting “strengthened anti-monopoly” for what reason, quoted Zhao Ping, vice president of the CCPIT Research Institute, as stressing in an interview that “the Internet is by no means a place outside the law. In the future, the Internet will also be under a better framework, taking into account the righteousness and innovation. And those earlier acts of abusing the dominant position in the market, creating unreasonable monopolies and making profits at high prices will all become a thing of the past.” And the Chinese government has strengthened the legal governance of cyberspace in the last two years, such as the implementation of the E-Commerce Law.
Liu Mengjun, director of the First Research Institute (Mainland Economic Research) of the Chinese Academy of Economic Research in Taiwan, interpreted that the Economic Work Conference of the Central Committee of the Communist Party of China mentioned “anti-monopoly” in relation to the three giants of the Chinese Internet, BAT (Baidu, Alibaba, Tencent).
Liu Mengjun analyzed: “Baidu, Alibaba, Tencent, these digital or digital technology majors, often have some information that the Chinese mainland wants to carry out the so-called social control related to some information. In particular, the digital majors are too big to fail or may pose a threat to the Communist Party’s dominance in power, which are all possible anti-monopolies. Secondly, similar to the European, the formation of an anti-monopoly complaint against the major U.S. technology companies, which has its connotation both internally and externally.”
Ding Shufan also cited the example of Alibaba Group’s financial payment platform Ant Financial Services, which absorbs more deposits in China than any of the four major state-owned banks, especially the first Industrial and Commercial Bank of China, making Xi Jinping aware that if something happens, it will kill the party and the country, and must be regulated.
The Chinese Communist Party’s Central Economic Conference proposed “anti-monopoly”, which Taiwan scholars and experts analyzed as targeting the three giants of China’s Internet: Baidu, Alibaba and Tencent.
To prevent the disorderly expansion of capital implies hitting the house?
As for the Central Economic Work Conference’s declaration to “prevent the disorderly expansion of capital,” Liu Mengjun concluded that the Communist Party’s top management is concerned about the impact of the real estate bubble on financial stability, which is a risk to be controlled in the future, and many local debts are related to this. In order to increase revenue, local governments often use land development as a means to build urban construction platforms, such as local governments transfer state-owned land under their jurisdiction to this platform, and this company takes the land to mortgage loans with financial institutions to carry out infrastructure construction.
Liu Mengjun said: “This will produce a phenomenon, you see many local governments take the money borrowed by banks to do real estate development, the formation of a lot of ghost houses now, because they do not sell, companies are not willing to move in, it becomes a bad building.”
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