[Epoch Times October 21, 2021]Hello friends, today is October 20 (Wednesday), and welcome to the “Foresight Quick Review”. I’m Tang Jingyuan.
Today’s focus: leaving behind a huge amount of money to buy roads, Jack Ma appeared in Spain; Han Zheng rarely took the lead in boycotting property taxes. Why did he get overwhelming support? There is a fierce struggle within the party to seek re-election. Xi Jinping retreats three steps in a row. There is only one purpose of throwing away the “historical resolution.”
The news circle in the past two days seems to be relatively calm, especially between China and the United States. Since Xibai called and Sullivan and Yang Jiechi met in Switzerland, there has indeed been a slight relaxation. As Xi Jinping officially announced the date of the Sixth Plenary Session of the Central Committee of the Communist Party of China, his energy is obviously mainly focused on the focus of “Anni”, and the topic of “interfering with foreigners” has obviously cooled down significantly.
Since it is in Annei, of course maintaining stability is the top priority, and all areas need to ensure that there is no trouble. In particular, the government has clearly announced that the Sixth Plenary Session of the Central Committee of the Communist Party of China will review a “Resolution of the Central Committee of the Communist Party of China on the Party’s Major Achievements and Historical Experience in a Century of Struggle”, which is the third “historical resolution” of the CCP that everyone is talking about.
This resolution is very important to Xi Jinping. It can even be said that Xi Jinping’s success in reaching the legal basis for re-election depends largely on the creation of this resolution out of thin air. Because of this, we have seen that Xi Jinping, who has always been strong, has rarely publicly made concessions before the meeting, and the concession took at least three steps.
[Ma Yun goes abroad and Xi Jinping makes concessions]
The first step is that Jack Ma actually went abroad.
We used an “unexpectedly” here. The reason may be basically known to friends. It is because Ma Yun’s situation has deteriorated at a rate of almost free fall all the way after Ma Yun was halted by Xi Jinping’s command from the Ant Financial IPO. Don’t talk about controlling him, many media are even starting to guess when Jack Ma enters the game.
Therefore, when the Hong Kong media “East Weekly” broke the news yesterday, after Jack Ma had a series of business talks in Hong Kong, he took a night flight from Hong Kong to Spain in the early hours of last Saturday morning, and soon became a Chinese circle. breaking news. Because everyone knows that Jack Ma can be lifted from the ban, at least it shows that the party mother has no plans to move him for the time being.
The report also said that there were many wealthy friends and tech tycoons travelling with Jack Ma. They traveled to Spain in two private jets one after the other. After arriving there, Jack Ma quickly boarded a superyacht with his friends. Set sail from the island of Ibiza in eastern Spain for a sea vacation.
For now, we are temporarily unable to determine whether Ma Yun is a bird out of the cage or a kite with a lifeline held in his hands. But one thing is certain, Jack Ma’s ability to go abroad for vacation at least means that he has temporarily passed the peak of the crisis of this round of regulatory storms, and the price he paid for this is that he respectfully offered tens of billions of money to buy roads.
On August 17, Xi Jinping just publicly proposed to promote common prosperity. Zhejiang News reported on September 2 that Alibaba Group has quickly launched ten major actions and will invest a total of 100 billion yuan by 2025 to help common prosperity.
When the National Development and Reform Commission only came up with a draft for soliciting opinions that non-public capital is not allowed to participate in news gathering, editing and broadcasting, Ma Yun immediately gave a resounding answer with practical actions: There is absolutely no opinion.
His action was, less than a year after he bought Mango SuperMedia, he suddenly cleared the stock and exited the market in September, and then transferred all his shares in Caixin.com only 4 days after the announcement of the NDRC document. Not only did they act swiftly, but they also kept a rare low-key while losing tens to tens of billions of wealth, without saying a word.
This is the effect that the authorities want: it not only allows people in the world to see how the once rebellious Jack Ma is docile and subdued, it sets an example for all those who have never known the authorities, but does not make the authorities really use their swords. Shooting a gun, leaving a notoriety for money and death.
This is why we say that Jack Ma paid a huge sum of money to buy roads and passed the first level anyway. This is the reason. The authorities were also happy to back down temporarily and let him go, to show that they had no intention of killing them all, and to appease the big business men who had become scared.
[Property tax was opposed, Xi Jinping was forced to make concessions]
The second step of Xi Jinping’s concession is the property tax.
Five days ago, on October 15th, the Chinese Communist Party’s “Seeking Truth” magazine published an article by Xi Jinping entitled “Solidly Promoting Common Prosperity”, which immediately attracted widespread attention. The article mentioned that it is necessary to prevent polarization and eliminate unfair distribution. It is necessary to rationally regulate excessively high incomes, improve the personal income tax system, and standardize capital income management. It is necessary to actively and steadily advance the legislation and reform of real estate tax, and do a good job of pilot projects.
The focus of this passage is obviously on the two key points of “mediating excessive income” and “advancing real estate tax.” At that time, a lot of media came out to interpret the impact of real estate tax. As a result, the situation suddenly changed yesterday. The Wall Street Journal suddenly broke an exclusive news that Xi Jinping’s property tax plan was met with widespread opposition within the party.
According to this report, since the Ministry of Finance, the State Administration of Taxation and other departments began to solicit feedback on the property tax proposal within the party this spring, opposition has swarmed. The negative feedback is overwhelming. And among the people who opposed it, Han Zheng, a member of the Politburo Standing Committee who was in charge of real estate tax promotion work.
Even Han Zheng, the “current management”, has openly opposed Xi Jinping, the “county official,” which can imagine how much resistance Xi Jinping has encountered.
The report said that due to widespread opposition, the pilot cities for real estate taxation have been reduced from about 30 originally planned to about 10, and the party is still working on how to set the property tax rate, whether to provide concessions, and the extent of the tax exemption. Waiting for issues to debate endlessly. According to a person familiar with the matter, the new law to promote property taxes across the country may not be finalized until around 2025.
Why are so many party officials opposed? Many officials believe that more than 90% of Chinese urban households own their own houses, and up to 80% of household wealth is tied to real estate. The imposition of real estate taxes may depress house prices and cause the value of real estate to shrink, which may cause a sharp drop in consumer spending and severely damage the overall economy.
This is actually the reason the party officials put it on the table, and the real reason may not stop there.
We all know that common prosperity is not only Xi Jinping’s economic policy, but also his major political line. He deliberately distinguished the Xi-style reform from the Deng’s reform. The biggest difference was that Deng Xiaoping encouraged some people to get rich first, which resulted in serious social polarization and a situation where the powerful and powerful were engaged in economic separatism. He proposed common prosperity to correct this line, and the real estate tax was the first shot he fired in order to defend his line.
But the gun failed to fire and became a dud. The fundamental reason is that the so-called common prosperity of the authorities is essentially nothing more than a legal robbery. In the words of the people, it is to kill the rich and help the poor. But in fact, the real purpose of the CCP is not to help the poor, but to kill the Fu Ji officials, or the Fu Ji party.
Xi Jinping has no money in his pocket
The reason behind this is very simple. Xi Jinping has few money in his pocket. On the one hand, in order to prevent the isolated international environment from further deteriorating, the share of the big coin cannot be reduced and can only be increased. On the other hand, he has to expand his arms and prepare for war. To accumulate food, grass, and armaments for the armed attack on Taiwan, and to engage in an arms race with the United States, Japan, Australia and other countries. In the context of substantial increases in expenditure, domestic economic data has experienced an avalanche decline.
We only need to take a brief look at this year’s GDP data: in the first quarter, due to the export growth caused by the epidemic, the CCP’s GDP growth was as high as 18.3% at one time, but it was immediately cut to only 7.9% in the second quarter. In the third quarter, it fell sharply to “Broken Five” again-only 4.9%, which is still official data.
Therefore, Xi Jinping’s idea is very simple. If you have no money, cut the leeks, and there is a high-sounding sign of common prosperity. As the People’s Daily said, it is entirely possible to pluck the goose feathers without letting the goose scream. But the problem is that the real estate goose is really too big, especially for the local finances, it is almost the only pillar, it is impossible to prevent the goose from screaming. Last year’s national financial report data showed that real estate income accounted for an average of 73% of local finances.
Local finance can’t sell land anymore
In other words, if a large-scale property tax is levied and housing prices are suppressed according to Xi Jinping’s vision, land prices will inevitably be affected. Once the local government cannot sell the land, we may see that it is not one or two. When Hengda exploded and fell, dozens of Hengda collectives exploded. Moreover, the process of thunder explosion inevitably brought out the radishes out of the mud, shaking out the bad debts and black accounts of a large number of local officials.
If this scene appears, the systemic financial risk that makes Xi Jinping restless and unwilling to sleep and eat is not a “dark horse” concept, but a “black bull”. The black swan and the gray rhino will come together, even if he really carries both. With a hundred kilograms of patience, facing this smashed Mount Tai, let alone walking ten miles, even if he wants to move half a step, it may be impossible. The result is that everyone finished playing together.
I believe that it is precisely because of this terrible risk that countless officials in the party quickly reached a consensus: Although the land will soon be sold out, but at present, it is possible to delay as far as possible. In any case, Xi Jinping cannot let Xi Jinping fight for a face with Deng Xiaoping. Now he will use his set of seven wounds to face his own fate. (Foresight quick review)
For Xi Jinping, achieving re-election is the primary and final goal. As to whether the property tax is feasible or to what extent, it is not his core interest that he must not give up. That’s why we saw the negative energy of Han Zheng taking the lead and the party’s extensive boycott of Xi Jinping’s prescriptions for the Chinese economy. It can be released. The purpose is obviously to use the method of exporting to domestic sales to stabilize countless people who are prepared to use verbal abuse. Welcome the public sentiment of real estate tax.
[To Stabilize the Party’s Jianghu Writes Historical Resolution]
Xi Jinping’s third concession was a major agenda of the Sixth Plenary Session of the Sixth Central Committee that was officially announced just now, which is the third historical resolution in the history of the Communist Party of China.
The full name of this resolution is very long. It is called “Resolution of the Central Committee of the Communist Party of China on Major Achievements and Historical Experience of the Party’s Centennial Struggle.” To review this resolution.
The reason why this resolution is eye-catching is that the two previous historical resolutions have a high status within the Communist Party of China. Absolute authority status; the second is the “Resolution on Certain Historical Issues of the Party Since the Founding of the People’s Republic” passed in 1981, which established Deng Xiaoping’s core status.
In other words, these two historical resolutions are the landmark documents of the Communist Party of China entering the Mao Zedong era and Deng Xiaoping era. So Xi Jinping is now coming to make the third historical resolution, and the overtone is naturally to let the whole country enter the Xi Jinping era.
As early as July this year, the mainland media had begun to hype the topic of this third historical resolution. At that time, it was widely speculated that Xi Jinping might divide the history of the Communist Party of China by “Mao Deng Xi”. Mao Dengzhi Hua Guofeng between Deng Jiang, Hu Yaobang and Zhao Ziyang between Deng Jiang, and even Jiang Zemin and Hu Jintao between Deng and Xi may be ignored.
However, judging from the official statement issued by the People’s Daily yesterday, it generally uses a two-part interpretation, that is, claiming that the CCP members with Mao Dengjianghu as the main representative have made major achievements and accumulated valuable experience. , And the Party Central Committee with Xi Jinping at the core has made new major achievements and accumulated new valuable experience. The word “new” distinguishes Xi Jinping from all the party leaders in the past.
In addition, the article still retains the official conclusions that Mao, Deng and Xi divided into three stages: standing up, getting rich, and getting stronger.
From this perspective, even if Xi Jinping is now fighting vigorously with Jiang’s anti-Xi forces, he still has to make some concessions within the party. In particular, Jiang Zemin and Hu Jintao have been included in the historical resolutions to be affirmed, highlighting Cong Jiang Hu. He still has no plans to overthrow many policies left over from the times, such as the extermination-style persecution of Falun Gong and the concentration camp-style persecution of Uighurs in Xinjiang.
[Full analysis of “historical resolutions”]
The reason why Xi Jinping was tied up by Jiang Zemin’s legacy policies is actually only one of the most critical factors, that is, he believes that he can realize the most fundamental core mission of the Communist Party, which is to dominate the world and plant red flags all over the world. This most fundamental line was described as “liberating all mankind” in the Mao era. In the Deng Xiaoping era, because of the need to accumulate power, he publicly only said “hide our capacities and bide our time and do something”, but privately, it also emphasized that sooner or later we must “lead the world.” Towards communism and redefine the two civilizations”.
Deng Xiaoping’s implementation of the “June 4th” massacre and subsequent “anti-peaceful evolution” political campaigns aimed to use actions to ensure that “the red world does not change color”, that is, the fundamental line is not biased.
In the era of Xi Jinping, this fundamental line of the Chinese Communist Party has been rephrased and described as a “community with a shared future for mankind.” In fact, no matter how the argument changes, its core connotation has never changed. Why did Xi Jinping say that the three decades before and after reform and opening up did not deny each other? He sounds a bit contradictory. In fact, he means that the core line of the CCP that he inherited has never changed. Although Mao and Deng’s specific policies are completely opposite, the starting point and the basic goal of the two are the same. It is the so-called “initial intention” that Xi Jinping has repeatedly emphasized.
Therefore, for Xi Jinping, the most fundamental reason for issuing this third historical resolution is one: He wants to use this document to gain the legitimacy of his life-long rule and realize the so-called great revival of the red CCP in his imagination.
We can see that behind the so-called historical resolutions, every time the CCP is faced with a major power struggle within the party. Mao Zedong passed the first resolution to defeat the pro-Soviet faction in the party and achieved dictatorship; Deng Xiaoping passed the second resolution to defeat the Maoist line in the party. Now Xi Jinping wants to pass the third resolution to get rid of the influence of Deng’s line.
To put it bluntly, he wants to emphasize that he is not the heir of Deng Xiaoping’s line, but the heir of the entire party’s hundred years of experience, and the pioneer of the new Xi Jinping line. Because any historical resolution is introduced, it means the beginning of a new era, and the pioneers of the era will automatically have the authority to reset all the rules of the game in the party. In this way, Xi Jinping is naturally not subject to Deng Xiaoping’s prohibition of lifelong tenure, and it is logical to obtain the legitimacy of re-election.
Many of my friends may have seen relevant news, saying that there were party media discussing the “change of seizing the door” in the Ming Dynasty, and there were also party media discussing the struggle to support a new emperor in the late Eastern Han Dynasty. Although the directions of various interpretations are different, it at least shows that different factions within the Communist Party of China are now secretly working on Xi Jinping’s re-election.
From another perspective, Xi Jinping’s three-step process of deciding the history of the Communist Party of China, Mao, Deng, and Xi, is actually a trilogy of the CCP’s seizure of global hegemony. The heel is called “stand up”.
Deng Xiaoping completed the primitive accumulation of the CCP’s economic foundation by stealing, kidnapping, deceiving, and making a fortune. He was called “getting rich”. And Xi Jinping believes that his mission is: to make full use of the political totalitarian system left by Mao and the economic coercion left by Deng to infiltrate the two major weapons to launch a comprehensive challenge to the existing world order and launch the so-called “great struggle”, so he calls himself “Strengthen”.
This is the true background of the CCP’s so-called historical resolution.
Okay, we will stop here today. Thank you for watching. See you next time.
“Foresight Quick Review” Production Team
Editor in charge: Li Hao#
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