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A tirade of a blogger widely endorsed by the Chinese state media has called for Beijing’s snowballing regulation to bring about the high costs of housing, education and health care, while also bringing about profound reforms in funding and cultural set up industries.
“This is a transformation from capital-centered to people-centered,” the author said, adding that those who wanted to block the deep reform efforts would be ‘thrown away’.
The commentary, originally published by a popular nationalist blogger, was shared by China’s largest state and party-controlled media, including the Xinhua news agency, the People’s Daily and CCTV television network, which show the broad level of state support.
It was published as investors and businesses in China prepared for the next step in Beijing’s extensive technological collapse, which already included e-commerce, education, fintech, travel and game sectors and alleged abuses of data security laws, antitrust enforcement and labor and consumer rights.
The commentary claims that the litany of recent ‘corrective actions’ has ushered in a ‘profound revolution’.
‘The capital market will no longer become a paradise for capitalists to get rich overnight. . . the cultural land will no longer be a paradise for sissy stars and news and public opinion will no longer be able to worship Western culture, ” said the blogger, who writes under the alias Li Guangman Ice Point Commentary.
The flood of regulatory action has cast doubt on China’s technology sector, estimating billions of dollars in valuations of technology enterprises and the wealth of their founders. Investors, including China’s leading technology supporter, SoftBank, have interrupts financing activities until the uncertainty shoots up.
The operations in the industry continued this week. On Monday, a meeting chaired by President Xi Jinping approved plans for tighter monopoly control and pollution. The next day, China’s largest security regulator warned of a restriction on funds in the private equity industry that differed from supporting innovation and new ventures.
However, Raymond Yeung, China’s chief economist at ANZ, pointed to recent temper tantrums by Han Wenxiu, deputy director of the Communist Party’s central financial office, who ‘represented the party’s economic authority’ and wanted the public to ensure that China did not ‘its ‘far left’ policy not repeated ‘- a reference to the chaos of the Mao was.
“In our view, the latest rhetoric indicates a significant shift in economic policy toward the redistribution of resources, as China’s leaders acknowledge the constraints imposed by the looming economic slowdown over the next few years,” Yeung said in a research note. writing.
Under a new brand “Xiconomics”, says Yeung, “the authorities are likely to steer the portfolio of financial institutions with the aim of benefiting specific segments, especially the small and medium-sized enterprises”.
“The reason for ‘common prosperity’ is to support long-term consumption, although this policy hinders revenue growth and wealth building,” he added, referring to Xi’s comments which point to a sharper focus on redistribution of wealth.
Additional post by Sherry Fei Ju in Beijing
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