Top Chinese leaders on Friday endorsed a more “pro-business” approach, saying China should “encourage and support the development and growth of the private economy and private enterprises.” Made during a meeting in Beijing for the Communist Party’s Central Economic Work Conference, the decision ignores the tough measures of the “no virus spread” policy after nearly three years and includes practical measures aimed at revitalizing economic growth, replacing the political ideology promoted by the president. Former Xi Jinping focuses on the economy.
Amid talks from Beijing about renewed support for the real estate sector and building confidence in business, He Lifeng, a member of the Politburo, expected to play a leading role in economic and financial policy, recently laid out a plan for China to beat the next 5% growth. In the year, higher than the expectations of the Federal Reserve (Federal Reserve Bank, US central bank) for the United States.
“Even if it fails, the costs will be limited,” says Junan Ma, senior fellow at the Center for China Analysis at the Asian Community Policy Institute, compared to the impact already being felt on China’s society, economy, and political landscape. “It shouldn’t be worse than not trying.”
Support for a more economically oriented approach indicates that Beijing is moving quickly to avoid a sharp economic downturn that could undermine public support for the Communist Party, say economists interviewed by the Wall Street Journal.
So far, Xi’s epidemic-control policies have stifled production, increased unemployment, eroded investor and consumer confidence, and sparked the country’s largest anti-government political protests in decades.
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