Xi Jinping’s call to private enterprises to “always be your own person” expert interpretation

[March 07, 2023](Epoch Times reporters Cheng Jing and Luo Ya interviewed and reported)private enterpriseAfter a round of intensive suppression by the Communist Party General SecretaryXi JinpingA few days ago, he said, “Always treat private enterprises and private entrepreneurs as our own people.”According to expert analysis, the CCP realizes the need for private enterprises to boost the economy, and these remarks are aimed at regaining the hearts of the people,But when the situation of the CCP’s advance and the people’s retreat will not change,private enterpriseConfidence has been lost, and the Chinese economy is hard to get out of the woods.

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Xi Jinping urges private enterprises to “always treat themselves as one of our own”

According to the party media CCTV,Xi JinpingLead the Standing Committee of the Political Bureau of the Communist Party of China to participate in the joint meeting of the National Committee of the Chinese People’s Political Consultative Conference of the Chinese People’s Political Consultative Conference on Monday (6th). He said to private enterprises that the private economy is an important force for the CCP to govern for a long time and realize the two century-old goals and the Chinese dream.

Xi Jinping also said, “We always regard private enterprises and private entrepreneurs as our own people, support private enterprises when they encounter difficulties, and give guidance to private enterprises when they encounter confusion.”

Regarding Xi’s remarks, Internet celebrity “Finance and Economics” recently analyzed to The Epoch Times that “this is a conciliatory nature”, “Because in the past few years, especially in the first two or three years of the epidemic, it has dealt a very heavy blow to the private economy. .”

In the past few years, the CCP has intensively launched anti-monopoly investigations on Internet giants. Alibaba received huge fines, and the listing of its Ant Group was suspended; Didi was delisted from the New York Stock Exchange; evaporation.

The real estate industry, which accounts for 30% of economic growth, has suffered from the CCP’s “three red lines” financing restrictions, and private real estate companies have defaulted on their debts one after another. Evergrande’s debt exceeds trillions. In addition, the education and training industry, including New Oriental, has also been severely suppressed, and the entire industry has almost been brought down.

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“Finance and Economics” said, “After the collapse of the private economy, China’s economy has been very bleak in the past two years. Whether it is economic growth, employment, or foreign trade, there has been a rapid decline, so it is afraid.”

After the CCP’s three-year strict containment of the epidemic, China’s economy has suffered a severe decline. The economy grew 3.0% last year, the slowest pace since 1976, when the Cultural Revolution nearly collapsed the Chinese economy, except for 2020, when the annual growth rate was just 2.4%.

Yu Weixiong, an economist at the Anderson School of Management in the United States, also analyzed the Epoch Times on the 6th. The mentality of the top leaders of the CCP is changing. It is found that China’s economy is actually very fragile, and its superficial attitude has softened.

“Finance and Economics” believes, “So in the past six months, whether it is a conference or a small meeting, the CCP has mentioned encouraging the private economy, saying that they want to protect their property rights and protect private entrepreneurs. In fact, they are anxious and afraid, and give some encouragement to the private economy. Calm down and let everyone not run away.”

Expert: The CCP has no legal protection for private enterprises

In his speech, Xi Jinping also declared that the requirement of “equal treatment of state-owned and private enterprises” should be put down from the system and law, so as to encourage the development of private enterprises and boost market confidence.

“Finance and Economics” believes that “Xi Jinping will not specifically introduce laws. In fact, the protection of the private economy should be mentioned in the Chinese Constitution and the Civil and Commercial Law. The legal position is basically determined. But China is not a country ruled by law. Encourage them verbally.” “Actually (for private enterprises) they just fatten up the pigs and then slaughter them, which is the same reason.”

Yu Weixiong, an economist at the Anderson School of Management in the United States, also analyzed the Epoch Times on the 6th. In fact, the CCP’s policy of advancing the country and retreating from the people has not changed, and the CCP controls everything. After all, I went too far to the left in the past, and now I feel that it will not work or make an adjustment. “Now (the CCP) needs to stabilize the economy. I hope that private enterprises can continue to operate well in China, earning economic growth and expanding tax revenue for the government.”

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For a long time, the CCP’s central enterprises and state-owned enterprises have occupied national resources and monopolized all opportunities, but their contributions are incomparable to those of private enterprises. Caijing reported in September last year that in the past 10 years, the private sector accounted for more than 60% of GDP from 50% and contributed more than 50% of tax revenue, more than 70% of technological achievements, and more than 80% of urban labor employment. post. The proportion of private market entities accounted for as high as 98% of the national market entities.

Analysis: Xi Jinping’s speech contradicts himself, private enterprises see no hope

In addition, Xi Jinping also stated that it is necessary to implement “building a new type of ‘pro’ and ‘Qing’ political and business relations” to “resolve problems and problems for private enterprises and let them let go of their hands and feet”; but he also said that private enterprises and private entrepreneurs must correctly understand the “two An unwavering” policy.

“Two unwavering” is the slogan put forward by the CCP in 2002. The first “unwavering” is to consolidate and develop the public sector of the economy. The development of the non-public economy is only “encouragement and support”.

After Xi Jinping came to power, all localities have emphasized party building in private enterprises and even foreign enterprises. Some large private enterprises have been “airborne” as the first party secretary, and some even require party members to wear party emblems.

As for Xi Jinping’s “two unshakable” demands and the liberalization of private enterprises, “Finance and Economics” believes that “he wants both, but he may not be able to do it in the end. His starting point should also be to emphasize this political-business relationship. “

Yu Weixiong also believes that the entire CCP’s policies and political direction of ruling the economy are full of contradictions, and the Chinese and Chinese companies must find a way out and find a living in this contradiction. This is how Chinese companies survive under the command of various policies. This is the biggest issue and it is very hard.

After the epidemic, the CCP’s finances were scarce, and private capital was targeted again. “Encourage and attract more private capital to participate in major national projects, etc.,” Xi said.

But the “financial cold-eyed” said, “It’s useless to emphasize now, those who don’t want to stay, no matter how much you say, they won’t change. , It’s too late to say good things now.”

He believes, “Investing in the real estate market and the stock market? There is no hope at present, and the Wall Street bosses are running away. How can ordinary private enterprises continue to invest money in it?”

“Invest in industry? Now foreign trade orders are divided up by other countries. Basically, you will not have new orders. If you say you encourage investment, who will invest? This is basically a gesture, but not would really have any effect.”

Yu Weixiong also said, “Everyone is running, and now capital is running out of China.”

The transfer of the industrial chain, the Chinese economy is facing a cold winter, and private enterprises are struggling

The General Administration of Customs of the Communist Party of China announced on the 7th that in terms of US dollars, the total value of China’s imports and exports in the first two months fell by 8.3%, and the imports and exports with major trading countries such as the United States, Europe, and Japan all declined. China News Agency said that it depends on the temperature of the international market, and the weakening of external demand will inevitably have an impact on China’s foreign trade.

Xi Jinping also admitted that he is currently facing unprecedented severe challenges. “Since the 19th National Congress of the Communist Party of China in 2017, the external environment for China’s development has changed dramatically, and uncertain and unpredictable factors have increased significantly.” He criticized Western countries for “carrying out all-round containment, containment, and suppression against me.”

“Time News” recently quoted customs data and China’s total spring orders to show that in January 2023, European orders to China will decrease by 50% year-on-year, and North America will decrease by 40%. According to the Hong Kong Statistics Department, imports and exports fell by 30.2% and 36.7% in the same month, falling to the extreme value in 70 years.

With the sharp reduction in foreign trade orders, the industry has observed that important ports in China from north to south, such as Shanghai, Ningbo, Yantian, Nansha, etc., have recently experienced a deserted scene of a large number of empty containers. Governments from all over the world organized delegations to Europe to grab orders. After Zhejiang and Guangdong, 39 foreign trade companies from Henan set off for Europe recently.

“Finance and Economics” said, “The industrial chain has been shifted to Southeast Asia and India one after another. There are no foreign trade orders. Many factories in China are basically closed. Many private enterprises have collapsed without foreign orders.”

“China’s economy is very bleak. Foreign trade is not good, investment is not good, and domestic demand cannot be driven. Basically, the Chinese economy will accelerate disintegration and collapse.” He said that all politicians, including Xi Jinping, are wishful thinking. “China’s economy has been destroyed. Now I can’t save it even if I want to.”

Responsible editor: Li Qiong#