Tag Archives: Mao Zedong

Xi Jinping has been elevated to the same level as Mao Zedong

The largest political event of the year in China is «two sessions.» The National Peoples Congress (NPC) is the national legislature of the Peoples Republic of China. The party have 2,980 members (2018) and it is the largest parliamentary body in the world.

As the NPC and the Peoples Political Consultative Conference (CPPCC) are the main deliberative bodies of China, they are often referred to as the Lianghui (two sessions). Its annual meetings provide an opportunity for the officers of state to review past policies and to present future plans to the nation.

 

In theory, the NPC is the highest organ of state power in China, and all four PRC constitutions have vested it with great lawmaking powers. In practice, however, it usually acts a rubber stamp for decisions already made by the state`s executive organs and the Communist Party of China.

One of its members, Hu Xiaoyan, told BBC in 2009 that she has no power to help he constituents. She was quoted as saying; «As a parliamentary representative, I don`t have any real power.» But the Chinese leader Xi Jinping have.

The parliament is expected to rubberstamp major constitutional changes that will elevate the power of President Xi Jinping which means Xi Jinping has been elevated to the same level as Mao Zedong.

It will also confirm dropping China`s two-term presidential limit which means Xi could stay in power for life, leading China according to his new ideological guidelines, known as «Xi Jinping Thought».

Lianghui last between one or two weeks and this year the CPPCC started on 3 March and the NPC started on 5 March. The Chinese premier Li Kequang said that people in China must be fully prepared for a tough struggle. He warned that there will be greater risks ahead for China.

«Two sessions» comes amid tariff tensions with the U.S which is Chinas largest trading partner. As you may know, the U.S have placed huge pressure on Chinas economy and financial markets. Therefore, Li said that the growth target for 2019 will be 6,0 to 6,5 percent.

This years growth is in line with economists’ expectations. Last year, the Chinese economy grew at its slowest pace since 1990, expanding by 6,6 percent in 2018.

Last year, President Trump announced additional tariffs on $250 billion worth of goods from China and Li warned that the trade war with the U.S has so far had a negative impact on business activities in China.

But the tariff battle could soon ease while the two largest economies in the world are in the final stages of the trade deal that could end this month. Li reiterated Beijing`s commitment to «safeguarding economic glabalization» and pledged to promote China-U.S trade negotiations while advancing negotiations on other trade agreements.

Retail sales in China have slumped and as a result of that they are doing what President Trump did; they will cut the taxes and boost the growth.

Li told the NPC that China would aim to deliver nearly 2 trillion yuan ($4298bn) of cuts in taxes and other company fees. It plans to boost spending and increase foreign firms’ access to its markets.

China will also increase its military budget by 7,5 percent to 1,2 trillion yuan. The country`s defence spending is closely watched for any signals as to its military intentions.

A slower growth in China is not good news for the West. A slower growth in China means that they will buy less from the West while it accounts for one-third of the global growth.

But take official growth figures from China with a pinch of salt. For all I know, I could be as low as 5 percent, but tax cuts could push the growth up again. In the longer run, the growth will continue to decline.

The richer China get, the slower the growth will be.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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The United States are growing faster than China

The world`s biggest economy is the United States followed by China, and sooner or later, China will replace the locomotive and be the biggest economy in the world. You can delay it, but it will happen in this century anyway.

They are both in conflict with each other with tariff tensions and a trade war. A strategy that is bad for both of them in the long run. The U.S is waiting for China to come to the table and make a fair deal. Today is the first day of talks to renegotiate the trade dispute between them. A deal that President Donald Trump repudiated.

Take a look at the chart above. Surprisingly, the U.S is more productive than China. Twice as much. The US economy advanced an annualized 3,4 percent on quarter in the third quarter of 2018 while the Chinese economy grew by “only” 1,6 percent quarter-on-quarter in the three months to September last year.

The Chinese economy is slowing and this has been going on for a while. But it`s not because of the trade war. China obviously have some problems and the China-U.S tension is one of them, but this is not the first time China and the U.S are in conflict with each other.

Deng Xiaoping and President Jimmy Carter signed a historic accord in 1979 and then reversed decades of China-U.S tension. Deng Xiaoping was a Chinese revolutionary and veteran of the Communist Party and he was eager to adopt capitalist methods and reforms in order to stimulate economic growth and restore confidence in the party.

Today, China has embraced capitalism but remains Leninist at heart. The founder of the Soviet Union, and his Bolshevik revolution, Vladimir Lenin changed China`s economic and political landscape.

Lenins Russian revolution in 1917 have a causal relationship with the birth of Chinas Communist Party in 1921 and the founding of the People`s Republic of China in 1949. As Mao Zedong once said: “The salvoes of the October revolution brought Marxism-Leninism to China.”

Lenin has played a much bigger role in China than Karl Marx and Friedrich Engels. The wholesale execution of enemies inspired Mao`brutal dictatorship and his launch of the Cultural Revolution under the theory of “continuous revolution under the dictatorship of the proletariat.”

Now, China has changed dramatically since Deng Xiaopings free-market reforms and Maos terrifying Leninist experiment in utopia. Now, China is the world`s second largest economy. 70 percent of the “socialist” economy is privately owned and nobody have more billionaires than China right now.

China is more a Leninist capitalist state than a Marxist socialist one. 800 million people in the middle class has jumped on the consumerism train in only a couple of decades under the stewardship of communist totalitarianism. Leninism`s lasting legacy.

On the other side, China has a debt crisis and a real estate bubble, so the question is; when will China collapse, and will it cause a global crisis? China is declining and it will continue to do so. Lending money to Kenya or Venezuela to name a few, are putting them all in a debt trap and it remain to see that Beijing can afford it. I`m in doubt.

Xi Jinping and his leaders know that they are in a very weak position, so they have to come to the table and make a deal with the U.S.

The stock market is in a correction territory at the moment. Investors have priced in two rate hikes this year and some U.S-China tension fear, but Trump reports “Big Progress” in trade talks with China were top trained negotiators came to the table earlier today.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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