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For Xi, the growth of the Chinese economy is not enough

For Xi, the growth of the Chinese economy is not enough


After several months of delay, China will hold the third plenary session of the 20th Central Committee next month, a meeting usually associated with major economic reforms or policy announcements. The postponement of the Third Plenum until 2023 gave rise to widespread speculation that the Chinese Communist Party led by President Xi Jinping was divided or undecided on economic policy, particularly following the disappointing performance of the Chinese economy after the lifting of Xi's Zero Covid policy at the end of 2022.

The meeting comes at a time when bifurcated narratives about China's economy permeate media outside China. One narrative focuses on the structural problems and policy mistakes that have plagued Xi's administration for several years, highlighting low economic growth rates, high unemployment, faltering consumption, demographic headwinds and a loss of confidence in the future. The other narrative focuses on China's major successes in manufacturing, particularly in new energy sectors, such as solar and electric vehicles, through industrial policy and state-led development. China appears to be catching up and threatening the dominance of capitalist economies in these important sectors as well as in artificial intelligence, or AI, as well as semiconductors and aviation.

Overcapacity and export surpluses are essential elements of both narratives and, taken together, connect evil with good. China's inability or unwillingness to boost domestic consumption necessarily focuses its economic policy on export-oriented manufacturing to fuel growth. Thus, although they emphasize different aspects of China's political economy, the two media narratives depend on each other.




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