China’s Xi Has to Fight on with Vested Interests for Supply-side ReformPosted: May 17, 2016
While Zhang Gaoli, the Politburo Standing Committee member and vice premier in charge of economy, is optimistic for a debt-fuelled U-turn recovery. Chinese President Xi Jinping had Chinese Communist Party (CCP) mouthpiece the People’s Daily publish first an authoritative person’s views and then Xi’s January long speech that denounce debt-fuelled recovery and advocate Xi’s supply-side structural economic reform that seeks substituting consumption- and innovation-led growth for debt-fuelled growth.
Xi has got the status of paramount leader able to silence dissents so that there is no debate concerning his reform, but powerful officials in charge of economy including Premier Li Keqiang and PSC member and Vice Premier Zhang Gaoli, simply do not carry out Xi’s reform and instead, continue to pursue debt-fuelled growth.
According to SCMP’s report today “‘Don’t wait, waver, hide or hesitate’: Xi Jinping on ‘supply-side’ reform”, Xi had to hold a meeting yesterday of the Central Leading Group on Financial and Economic Affairs to tell officials to implement his reform.
SCMP says CCTV quotes Xi as saying in the meeting, “All regions and all departments must unify their thoughts and actions to stay in line with the decisions [on reform] made by the party’s Central Committee.” “Don’t wait because of the heavy burden, or waver because of the extreme difficulties, or hide because of the risks, or hesitate because of the pain.”
Has Xi convinced Li and Zhang? It does not seem so.
SCMP says in the report, “However, in an apparent defence of its economic achievements, the State Council yesterday published three articles on its website, arguing that the county’s economic growth had remained stable, the economic structure had improved, and people’s living standards were on the rise.
“Although the mainland has pumped an unprecedented amount of credit into the economy – which slowed significantly in April, the country’s monetary and credit growth was ‘still stable and normal’ overall, according to a statement on the government website.”
Xi has to continue his fight for his supply-side structural economic reform.
Comment by Chan Kai Yee on SCMP’s report today, full text of which can be viewed at http://www.scmp.com/news/china/economy/article/1946073/dont-wait-waver-hide-or-hesitate-xi-jinping-supply-side-reform