Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Changing China: Xi Jinping's effort to return to socialism

Changing China: Xi Jinping's effort to return to socialism

For decades life in China had evolved around its home-grown version of let-it-rip capitalism.

Despite being technically a "communist" country, the government had put its faith in trickle-down economics, believing that allowing some people to become extremely rich would benefit all of society by dragging it out of the disastrous quagmire of Chairman Mao's Cultural Revolution as quickly as possible.

To an extent it worked. A large middle class has emerged and people in virtually all strata of society now have better living standards as a result.

Wealth disparity


From the stagnation of the 1970s China has been thrust to the top of the pile, now challenging the United States for global economic dominance.

But it left a chasm of income disparity.

It is there to be seen in the children of those who were in the right place and the right time.

Parents who were able to take over factories in the 1980s made exorbitant profits which have paid for their progeny to now drive flashy sports cars around gleaming cities, zooming past the construction workers who wonder how they will ever be able to afford to buy a home.

The get-out-of jail card for the Party had always been the phrase "with Chinese characteristics".

The concept of socialism - "with Chinese characteristics" - allowed the government massive philosophical leeway to run a society which, in many ways, was not very socialist at all.

General Secretary Xi Jinping appears to have decided that this is no longer acceptable.

The Chinese government, under his leadership, has started putting the Communist back in the Communist Party, at least to some extent.

Despite the communist system, there is a huge gap between China's richest and poorest people

The new catchphrase is "common prosperity".

It hasn't really appeared yet on the street side propaganda posters but this can't be far off.

It is now the cornerstone of what China's leader is doing.

Crackdowns on daily life


Under this banner, targeting tax evasion by the wealthy makes more sense, as do moves to make education more equitable by banning private tutoring companies. The ongoing crackdown on the country's tech giants can also be seen as part of the plan.

So does Xi Jinping really believe in this idea of a communist project? It is hard to be 100% sure but some observers would say it certainly seems that way.

China is this year celebrating the 100th anniversary of the Communist Party

As a comparison, in the past it didn't feel like that with many other Party officials.

The thing is that - along with the wealth redistribution aspects of the communist path - Mr Xi also seems to believe that this means thrusting the Party back into most aspects of daily life, as the only realistic way of achieving what needs to be done.

Kids are being lazy, wasting away their youth playing video games? Party to the rescue: three-hour gaming limit.

Teenagers having their minds poisoned with silly, idol-worshipping television? Party to the rescue: "sissy looking" boys banned from programmes.

Demographic time bomb ticking: Again, the Party has the solution: Three-child policy for all!

Football, cinema, music, philosophy, babies, language, science… the Party has the answers.

At odds with his father's beliefs


To try to understand what has made Xi Jinping the leader he is today you have to take a look at his background.

His father, Xi Zhongxun, was a Communist Party war hero, known as a moderate, who was later purged and imprisoned in the Mao era.

At the time Mr Xi's mother was forced to denounce his father. After his father's official rehabilitation in 1978, he pushed for economic liberalisation in Guangdong Province and reportedly defended one of China's most progressive leaders Hu Yaobang.

Given the persecution of Mr Xi's father at the hands of Communist Party zealots, given his father's inclination towards reform, many have asked why Xi Jinping now seems to be taking the Party in a direction which would appear to be at odds with his father's beliefs?

There are various possible explanations.

Perhaps he simply disagrees with his father's line on certain political matters.

Or maybe China's leader intends to pursue a plan which, while different in emphasis to the priorities of his father, will not end up anywhere near the policies of the Mao era. At least not intentionally.

However, it does still seem quite remarkable.

Xi Jinping appears on a large screen during an event marking the 100th anniversary of the Communist Party

When his father was sent to prison, Xi Jinping, at the age of 15, was made to go to work in the fields for years, living in a cave house.

These tumultuous times clearly toughened him up but could just have easily transformed into a hatred of politics, especially of a hard-line variety.

Some China watchers have speculated that he perhaps believes that only a strong leader can guarantee that China will not return to the chaos of the 1960s and 70s.

And remember the rules have now been changed so that he can remain in power for as long as he likes.

One reason for all this guess work is that we never hear him explain what he is doing in terms of his decisions. China's leaders do not give interviews even with the compliant Party-controlled media.

Mr Xi turns up in rural villages for television opportunities and is welcomed by orchestrated crowds of cheering locals who receive his wisdom on corn growing or other aspects of their work and then he leaves.

So it is hard to predict what new rules, restrictions or guidelines might be placed on economic activity in China or how far any of this will go.

In recent times, barely a week has gone by without a major change to the regulations governing one part of the Chinese system or another.

It has been, frankly, difficult to keep up with them. Many of these changes have come completely out of the blue.

It is not that there is an innate problem with the state controlling various levers of production here. That is for economists to debate in terms of what is most efficient. The problem has been the sudden uncertainty.

How can anybody reliably make investment decisions if they don't know what the ground rules will be in a month's time?

There are those here who see the whole process as a natural part of the country "growing up". In areas which had been unregulated there have needed to be regulations.

If this is the case, then this period of shock tactic transition may be only a temporary state which will eventually calm down as new rules become clear.

But it is by no means clear what the length or breadth of these moves will be.

One thing that is certain is that any shift should be seen through the prism of Xi's "common prosperity" drive at a time when the Party will not give up an inch of its power while implementing it and, in China, you can either get on board this truck or get run over by it.


Why does China’s economy matter to you?


AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
United Nations Calls for Global Action Against Disinformation and Hate Speech Online
Tucker Carlson warns of an inevitable clash in Western societies over mass migration
OpenAI CEO Sam Altman praises the rapid progress of Chinese tech companies.
Poland's President Karol Nawrocki ENDS support for Ukrainian citizens:
Italy's PM Giorgia Meloni highlights record employment and economic growth
Chancellor Friedrich Merz Re-elected as CDU Leader, Opposes AfD Influence
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
UK Government Considers Law to Remove Prince Andrew from Royal Line of Succession
Two teens arrested in France for alleged terror plot.
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Former President Yoon Suk Yeol Sentenced to Life in Prison for Abuse of Authority
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
German Chancellor Friedrich Merz calls for real name use on social media.
Italian Police Arrest Man After Alleged Attempt to Abduct Toddler at Bergamo Supermarket, Child Hospitalised With Fractured Femur
British Tourist Arrested at Hong Kong Airport After Meltdown and Vandalism
European Commission Plans Purchase Incentives Limited to Vehicles Manufactured Largely in the EU
French District of Pas-de-Calais Introduces Immediate License Suspension for Drivers Using Mobile Phones
Volkswagen Targets €60 Billion in Cost Reductions as Sales Decline and Global Pressures Intensify
Eighty-Year-Old Lottery Winner Sentenced to 16.5 Years for Drug Trafficking
Rubio Calls for Sweeping U.N. Reform, Saying It Has Failed to End Wars in Gaza and Ukraine
10,000 Condoms Distributed at Winter Olympics 2026 Athlete Village Depleted Within 72 Hours
Poland's President Advocates for Evaluating Independent Nuclear Weapons Development
Mayor of Serdobsk in Russia’s Penza Region Resigns After Housing Certificates Granted to Migrant Family Trigger Public Outcry
China’s EV Makers Face Mandatory Return to Physical Buttons and Door Handles in Driver-Distraction Safety Overhaul
UK Green Party Considering Proposal to Legalize Heroin for an Inclusive Society
OpenAI and DeepCent Superintelligence Race: Artificial General Intelligence and AI Agents as a National Security Arms Race
We will protect them from the digital Wild West.’ Another country will ban social media for under-16s
Heineken announces cut of 6,000 jobs due to declining beer demand
Apple iPhone Lockdown Mode blocks FBI data access in journalist device seizure
Belgium: Man Charged with Rape After Faking Payment to Sex Worker
KPMG Urges Auditor to Relay AI Cost Savings
Canada Opens First Consulate in Greenland Amid Rising Geopolitical Tensions
China unveils plans for a 'Death Star' capable of launching missile strikes from space
Investigation Launched at Winter Olympics Over Ski Jumpers Injecting Hyaluronic Acid
U.S. State Department Issues Urgent Travel Warning for Citizens to Leave Iran Immediately
Wall Street Erases All Gains of 2026; Bitcoin Plummets 14% to $63,000
Eighty-one-year-old man in the United States fatally shoots Uber driver after scam threat
Political Censorship: French Prosecutors Raid Musk’s X Offices in Paris
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Global Shifts in War, Trade, Energy and Security Mark Major International Developments
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
×