Taiwan’s senior political and economic commentator Wu Jialong told Voice of Hope that this is just Xu Jiayin’s wishful thinking. He pointed out that if the CCP really wants to save the real estate industry, it must adopt the method of saving the four major banks and set up some asset management companies to take over the bad debts and debts of the real estate industry, so that the real estate industry can start to develop on a new basis. “But from a macroeconomic point of view, real estate companies are under huge debt pressure, and the CCP’s fiscal deficit is too large. There is almost no way, and there is no such possibility.”
I don’t know if Xu Jiayin’s confidence mentioned above is related to Xi Jinping’s recent speech.
In December 2022, Xi Jinping, the leader of the Communist Party of China, proposed at the 2023 Central Economic Work Conference of the Communist Party of China to ensure the stable development of the real estate market, do a solid job in ensuring the delivery of buildings, people’s livelihood, and stability, and effectively prevent and resolve high-quality heavy-term construction projects. reduce business risks and improve assets and liabilities.
Xi Jinping also said that it is necessary to encourage and support the development and growth of the private economy and private enterprises, and protect the property rights of private enterprises and the rights and interests of entrepreneurs.
Some people believe that this move is a “reassurance pill” for private enterprises.
Wu Jialong told Voice of Hope that the CCP has already dealt with private enterprises. However, when Trump launched a trade war in 2018, the CCP saw that the situation was wrong, and brought private entrepreneurs to a discussion, hoping to stabilize private enterprises first. Xi Jinping said that private enterprises and private entrepreneurs are their own people. However, in 2020, Ant Financial was suddenly suspended. After that, many large private companies, including Alibaba, Didi, and JD.com, were severely punished by the CCP.
Wu Jialong pointed out that in addition to China’s domestic economic problems, the CCP also squandered and lost a lot of money along the Belt and Road. Therefore, the CCP is now facing dual financial and financial pressures, so what they think should be how to harvest and fill the financial gap as soon as possible.
“The CCP will probably not know how to revive the economy, but (will find a way) how to harvest and how to rob money. In the past, power was given out of the barrel of a gun, but now money is given out of the barrel of a gun.”
“It is conceivable that the Communist Party has no such thing as private entrepreneurs. All capitalists and the bourgeoisie are targets of class struggle and communism. Therefore, now private entrepreneurs (should) get out of the good fantasy of reform and opening up, It is impossible to be a private entrepreneur on the territory of the Communist Party.”