Beijing’s economy grows gloomy amid strict covid norms, affects social stability

Beijing [China], October 20 (ANI): As Chinese leader Xi has put a premium on national security and politics, its side effects are seen in terms of slowing economic growth and employment in the country.
During his opening remarks at the 20th National Congress on Sunday, he reiterated that politics and national security, including the modernisation of the military, are of paramount importance, reported the Sydney Morning Herald.
However, the transparency in economic figures of the country and their revelation in the form of the release of data on how the economy fared in the past three months seems to lack under the regime of Xi Jinping.
Highlighting the situation of China’s economy, a specialist in Chinese elite politics and finance at the University of California at San Diego, Victor Shih said, “It does show the primacy of politics in influencing the very competent, institutional technocracy that China has.”
“The very likely reason the numbers were delayed was the State Council leaders were afraid the numbers would detract from the triumphant tone of the party congress,” he added.
“It’s a horrible blunder. I don’t know if they are massaging the numbers. Even if they need to massage the figures, the better thing to do would be to massage them within the usual time frame,” stated Yale University law professor specialising in comparative legal and economic history, Taisu Yang in a separate statement, according to the Sydney Morning Herald.
Moreover, Beijing set a target in March that growth would be “about 5.5 per cent” this year, however, the country’s economy grew only a little more than 3 per cent in the third quarter.
Lately, China has been witnessing widespread layoffs among young employees and numerous private property developers have defaulted on debts this year after Beijing discouraged real estate speculation. Municipal lockdowns to stop outbreaks of COVID-19 have taken a heavy toll on service sectors adding to the miseries of people.
Also, China no longer released data on construction cost inflation, starting last year, Sydney Morning Herald reported.
China is the world’s last major economy still enforcing strict zero-Covid measures, which aim to stamp out chains of transmission through border restrictions, mass testing, extensive quarantines, and uncompromising snap lockdowns.
The ruling Communist Party has used the zero-Covid strategy to argue that its political model is superior to Western democracies, and Xi has thrown his weight behind the policy. For local officials, doubling down on zero-Covid is a way to toe the Party line, demonstrate their loyalty to Xi and prevent any large-scale outbreak that could jeopardize their career weeks before the Party Congress, reported CNN.
As a result of the restrictions, some inside China have taken to calling this year’s holiday “the bleakest Golden Week ever” as people become fatigued with three years of Covid restrictions, choosing instead to stay at home rather than risk getting caught in unexpected lockdowns. (ANI)