Home » [China Watch]Xi Jinping and Liu He clash with one left and one right? | World Internet Conference | Private Economy

[China Watch]Xi Jinping and Liu He clash with one left and one right? | World Internet Conference | Private Economy

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[EpochTimesSeptember292021](Epoch Times reporter Ning Haizhong reported) In the past two years, observers have always learned from official information that Xi Jinping tried to reverse the trend of western capitalist evolution that began in the Deng Xiaoping era. On the other hand, the authorities have repeatedly emphasized that reform and opening up remain unchanged, and support the “healthy development” of the private economy. Liu He, who has long been Xi Jinping’s “economic think tank”, has been promoted to be the deputy prime minister of the Communist Party of China in charge of some economic affairs, and his situation now seems to be more embarrassing than in the past.

Xi Jinping’s congratulatory letter and Liu He’s speech release different messages

The 2021 “World Internet Conference” organized by the CCP opened in Wuzhen, Zhejiang Province on September 26. It lasted for three days and closed on the 28th. Liu He attended the opening ceremony via video, read out Xi Jinping’s congratulatory letter and delivered a speech.

What Xi Jinping never forgets in his congratulatory letter is “building a digital security barrier” and his proposal of “building a community with a shared future for mankind.”

After praising Xi Jinping’s letter, Liu He also emphasized “unswervingly promote reform and opening up” and “support the healthy development of the private economy.”

In the face of a large number of private tycoons present, Liu He doubted something. He said that he supported the “healthy” development of the private economy.

This is the eighth time the so-called World Internet Conference has been held in Wuzhen since 2014. In the cold wave of the authorities pursuing the Internet technology industry, Jack Ma, Ma Huateng, and Robin Li were absent from this summit, and other business leaders were also in a hurry. The biggest selling point of the summit was Jack Ma, who was under the pressure of frequent purge. His successor Zhang Yong, on behalf of Alibaba, announced two specific plans to “help common prosperity”. Not long ago, Alibaba responded to the official so-called “common prosperity” and stated that it will invest 100 billion yuan in total by 2025.

Judging from the information disclosed in Xi Jinping’s congratulatory letter, Xi Jinping’s emphasis on digital security has given rise to Lenovo’s recent “strong supervision” on technology giants, especially the requirement to share big data. Last week, Ant Group reported that the credit data generated by its popular consumer loan service Huabei will be fully integrated into a credit investigation system of the Chinese Communist government. This is an important step for Ant Group to move closer to the main direction of the Chinese Communist Party’s regulatory authorities.

The listing of the Ant Group controlled by Ma Yun was suspended at the end of last year, which also opened the curtain for the authorities to purge private Internet giants. Recently, the authorities have also strengthened the supervision of various industries, including the entertainment industry.

But Xi Jinping not only needs supervision, but also hopes that the CCP will strengthen its control in guiding capital flows and set stricter boundaries for entrepreneurs and investors and their profitability.

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Regarding the real estate industry, the CCP government proposed the “three red lines” regulatory measures to restrict the high-leverage operation of real estate developers, which accelerated the outbreak of the financial crisis of Evergrande Group. The ongoing Evergrande crisis is just a microcosm of the entire industry. The authorities may further tighten regulations on other private real estate developers.

Liu He “fires the fire”

At the meeting of the Central Finance and Economics Commission in mid-August this year, Xi Jinping emphasized the need to achieve “common prosperity” and proposed the “three distributions” of wealth. This will allow the government to further intervene in the economy and adopt measures to allow the rich to “voluntarily” share the fruits of success. One month later, the National Development and Reform Commission of the Communist Party of China disclosed again that it will formulate an action plan for promoting common prosperity and promote the construction of basic institutional arrangements for the coordination of primary distribution, redistribution, and three-time distribution.

The CCP’s official media and overseas pro-CCP media have stated that China will enter a new era centered on the realization of common prosperity. But this “common prosperity” was considered a “money grab plan” from the very beginning. Many public opinions in China and abroad are skeptical of the so-called common prosperity.

On August 29, a number of official media of the Communist Party of China concentratedly forwarded a self-media commentary. The article stated that the recent series of official rectification actions in various fields were “a profound change” and that the obstacles to this change “will be discarded.” .

Because of Xi Jinping’s wave of purge of private enterprises, coupled with this propaganda, the industry panic. Liu He then acted as a fire extinguisher. Recently, Liu He has expressed his support for the public development of private enterprises at least three times, and has been appeased, including his speech at this Internet Conference.

Fighting for power or Xi is one of the reasons for purging multiple industries

The Xi authorities purged multiple industries and were also accused of the need for power to fight.

Xi Jinping said at the Central Commission for Discipline Inspection in January this year: “Political issues and economic issues are intertwined, threatening the political security of the party and the country…” Anti-corruption should “focus on corruption cases where political issues and economic issues are intertwined.”

As we all know, under the privileged system of one-party dictatorship, some private enterprises that can develop in China have to rely on high-level power to act as white gloves for powerful families.

Alibaba, which was initially purged, was accused of having a close relationship with Jiang’s dignitaries. The investors behind the Ant Group include Boyu Capital, which was established in 2010 by Jiang Zemin’s grandson Jiang Zhicheng, and Jia Qinglin’s son-in-law Li Botan and others.

After the authorities successively purged private enterprises such as Alibaba, the Central Commission for Discipline Inspection of the Communist Party of China published an article on September 25, describing “preventing leading cadres from being kidnapped by interest groups” and treating private enterprises as interest groups.

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The authorities announced on September 26 that they would “inspect” 25 banks and regulatory agencies including the People’s Bank of China, the Foreign Exchange Bureau, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the Shanghai Stock Exchange. Many of these institutions invest in private enterprises, and they will now be subject to stricter supervision.

Liu He suspected of being pressured within the party

Some observers regard Wang Huning, a member of the Politburo Standing Committee, who was in charge of ideology and was appointed by Jiang Zemin and Zeng Qinghong, as the big figures behind the conservatives of the CCP, and listed Li Keqiang, Wang Yang and Liu He as representatives of the so-called pragmatics.

This method of dividing factions is still controversial, but Liu He is indeed recognized as a market-friendly reformer. This senior CCP official whose father died tragically during the Cultural Revolution had the experience of studying in the United States.

Liu He has a low-key style. During Xi Jinping’s first term, he was often the standard for Xi Jinping’s travels and was regarded as an important member of Xi Jinping’s faction. After the meeting of the People’s Congress of the Communist Party of China in March 2018, Liu He served as the deputy prime minister and assisted Li Keqiang in his work.

As soon as Liu He took office, the Sino-US trade war kicked off. Liu He was appointed as the head of the Chinese trade delegation and the leader of the China-US Comprehensive Economic Dialogue.

In the past few years, in the trade battle with the United States, Liu He has tried to portray Xi Jinping’s actions as necessary steps to promote stagnant market reforms. However, Liu He’s work on the front line was alluded to as a “traitor” by domestic conservatives.

Because Xi Jinping used a series of moves to clean up all walks of life in the name of anti-monopoly and rectification of society, Liu He’s role in it seemed quite embarrassing.

In late September, the Wall Street Journal reported that a series of “strong supervision” policies of the CCP authorities were directly led by the CCP General Secretary Xi Jinping, instead of being responsible for details by Vice Premier Liu He as usual. And because Liu He failed to prevent Didi Chuxing from going public in the United States in June, he had to put forward “self-criticism” within the party. “Self-criticism” is a common way for the CCP to fight in the Mao Zedong era.

In this regard, current affairs commentator Li Linyi stated that Liu He was rumored to “do a review” because one of the reasons is that Liu He is economically biased towards liberals, that is, he advocates “market-oriented”, including Liu He’s explanation. When Xi’s policy was introduced, he was also portraying Xi’s actions as preparing for “market-oriented reforms.” This is in conflict with the “party-led economy” chosen by Xi. However, the relationship between Liu He and Xi is still relatively good, so it is only a “review” at the moment.

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Li Linyi said that another reason is that Didi is involved in many powerful families, including the family of Xi’s political opponents, Jiang Zemin. The easy listing of Didi in the United States is not in line with Xi’s political interests at the 20th National Congress of the Communist Party of China.

Another current affairs commentator, Tang Jingyuan, said in a self-media program that Liu He was forced to make a review for “failure to prevent Didi from going public in the United States.” This is actually very intriguing. The meaning of course does not mean that Liu He has no power to stop, but that he chose to let it go. The subtext is that Liu He supports Didi’s listing in the United States.

Tang Jingyuan said: “From here we can see that Xi Jinping no longer trusts his once close assistant Wang Qishan or now his close assistant Liu He. His isolation is unprecedented and he does not trust anyone.”

Twenty Liu He stays

Since the beginning of this year, Liu He has been exposed to negative news by foreign media, including in early May by the Wall Street Journal that another deputy prime minister, Hu Chunhua, will replace the position of China-US trade negotiator, but the report was quickly denied by the Ministry of Commerce of the Chinese Communist Party.

In mid-May, Liu He’s son, Andy Liu Tianran, was exposed by the Financial Times as the chairman of Skycus Capital, a private equity fund. Although he had resigned as chairman in accordance with the regulations of the Chinese Communist Party, he continued behind the scenes. Handle transactions secretly, especially in investing in tech giants Tencent and JD.com.

However, regarding Liu He’s exposure to negative news, commentator Wang Youqun believes that it is likely that Xi Jinping’s political opponents before the 20th National Congress of the Communist Party of China deliberately spread the word abroad. action.

Wang Youqun said that Liu He, 69, has reached retirement age. However, Xi’s biggest political enemy fears that Xi will break the rules and let Liu He become a member of the Standing Committee of the Political Bureau of the Communist Party of China at the 20th National Congress of the Communist Party of China, or stay as Vice Premier of the State Council, or serve as the next Premier of the State Council. They exploded the black material of Liu He’s son in foreign media, perhaps to prevent this from happening. If Liu He is expelled from politics, Xi will lose one of the most important economic assistants.

This statement could not be verified by Beijing. But at least, on September 26, Xi Jinping still asked Liu He to read his congratulatory letter via video at the “World Internet Conference”, but not others.

Editor in charge: Li Qiong#

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