Home News Analysis: Xi wants to strengthen government control and set limits on corporate profits | Xi Jinping | Crack down on overseas listing of companies | Foreign companies in China

Analysis: Xi wants to strengthen government control and set limits on corporate profits | Xi Jinping | Crack down on overseas listing of companies | Foreign companies in China

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[Epoch Times September 22, 2021](Epoch Times reporter Wang Xiang comprehensive report) The Wall Street Journal reported on Monday (September 20) that their research shows that Xi Jinping has no intention of eliminating market forces; but Xi Jinping wants the CCP Play a greater role in guiding capital flows, setting stricter boundaries for entrepreneurs and investors and their profitability, and imposing even more control over the domestic economy than it is now.

The report said that Xi Jinping’s development philosophy is to allow the Chinese Communist government to have a certain degree of control, guide the domestic economy and industry to develop along the path it chooses, and guide private resources to strengthen the (party) state.

The report believes that Xi Jinping’s development philosophy may suppress most of the entrepreneurial vitality, which in the past has promoted China’s prosperity and inspired years of innovation. At the same time, it may also bring more turbulence to foreign companies.

Western companies in China have always had to follow the CCP’s guidelines, but the party’s requirements are increasing, including sharing personal user data, hiring CCP members when recruiting, etc. Now these foreign companies are facing sacrificing more profits to help the CCP government achieve its goals. pressure.

A person who understands the thinking of the highest market supervisory authority in the Chinese Communist Party said: “The supervision of foreign investment will be strengthened. In this way, foreign investment will not be able to obtain ultra-high profits in China through monopoly and capital market operations.”

From a domestic political perspective, Xi Jinping believes that the conditions for his re-election in 2022 are ripe, and no one in the party has the strength to challenge his authority. The outside world predicts that Xi Jinping will break the traditional succession system by the end of 2022 and continue to govern.

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Officials involved in policy formulation said that this constitutes a motivation to encourage Xi Jinping to take action and let the outside world see that he is doing great things for the people to justify his continued re-election.

Some of the Chinese Communist Party officials stated that Xi Jinping talked about the need to differentiate China’s economic system from the West in an internal meeting. Xi Jinping believes that Western capitalism focuses too much on personal wealth and pursues the supremacy of profit, while allowing large companies to become too powerful, giving rise to inequality, social injustice, and other threats to social stability.

He Qinglian, an economist based in the United States, wrote an article in August analyzing why the CCP reorganized the industry and said: “Why does the U.S. investment banking community not understand why the Chinese (CCP) authorities want to crack down on these industries. Although the progressive party of the U.S. Democratic Party and the CCP regime both follow the same ancestor, Marx However, the water and soil of the two countries are different, and the standards for how to transform the “new socialist” are even more different. The American progressives have now entered the stage of life-long welfare, repair of sexual organs, sex change, and legal anaesthesia. Xi Jinping’s “new socialist” ‘It is completely different from the ultra-left progressives in the United States. It is to follow the party’s words, work hard, live a healthy lifestyle, and bad habits such as Internet addiction and narcotics should be banned. Every time China catches those drug dealers, they must be sentenced to death. Trying to rescue, but the Chinese government is unmoved, it is almost a standing diplomatic play. Attacking these industries, the United States only sees the loss of money and the evaporation of capital in the eyes of the Chinese government, and it cannot understand the social significance of the Chinese government’s move.”

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“Hua Ri” reported that Xi Jinping and his men are still talking about the need to develop a private economy, which accounts for 80% of urban employment in China. But officials said that the focus now is on supporting small and medium-sized companies in the fields of power equipment, sensors, and semiconductors, which are unlikely to develop into another power base. These companies are expected to focus on innovations that can enhance China’s manufacturing capabilities, rather than profits.

Editor in charge: Ye Ziwei#

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