China seeks boost to the private sector, but hits ‘skepticism’ – 07/20/2023 – Nelson de Sá

After the scare with the GDP in the second quarter, the document “Opinions of the Central Committee of the Communist Party of China and the State Council for Promoting the Development and Growth of the Private Economy” was released in Beijing.

It was translated into English and analyzed by the Pekingnology newsletter, today an international reference on decisions and news from within China. It is produced by journalist Zichen Wang, from the Center for China and Globalization think tank in Beijing.

“In China’s political system, a document from the two bodies is the highest possible,” he explains. It was featured on the Xinwen Lianbo newscast (pictured above) and headlined on party media websites—until the meeting of Xi Jinping and Henry Kissinger.

“Beijing works to change the narrative,” says Pekingnology. The document reaffirms and details support for the private sector, having been anticipated, over the last few weeks, by meetings with Chinese businessmen, as well as Americans and Japanese.

It was accompanied by supporting articles signed by Ma Huateng or Pony Ma, from Tencent, and Lei Jun, from Xiaomi. Opening the text of the first, on WeChat, “The private economy is an important force to promote economic and social development”.

In the statement of Caixin, Beijing’s main financial vehicle, “China promises to create a ‘bigger, better and stronger’ private sector”.

Bloomberg first ran a story emphasizing Ma’s support, “Chinese billionaires give weight to private sector push,” but then focused on the subdued response from financial markets, “Xi’s big push for private sector hits wall of skepticism.”

As highlighted by Alan Li, from Atta Capital, from Hong Kong: “It’s more like a framework [framework]. Investors are expecting more targeted stimulus measures, such as easing housing policies and more fiscal spending.”

ONCE AGAIN AT THE CROSSROAD

Xi Jinping avoided the US climate envoy, John Kerry, but welcomed former Secretary of State Henry Kissinger with public smiles (above, in a video from the CGTN news channel broadcast by the Assistant Minister of Foreign Affairs, Hua Chunying).

It made headlines online even in Renmin Ribao (People’s Daily), with a photo of the two and highlighting Xi’s phrase that “China and the US are once again at the crossroads”.

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