In an article published by Bloomberg on October 3, Writer Shuli Ren commented that China’s regime promoted “Common Prosperity” but resulted in “Common Poverty.”
One year ago, the Chinese Communist Party (CCP) ’s General secretary, Xi Jinping, promoted “Common Prosperity.” Ren said that Xi did so because he wanted to expand China’s middle class to include those without university degrees, small business owners, migrant workers, and farmers.
However, the CCP’s year-long crackdown on big technology and real estate companies has cost China trillions of dollars in assets, causing Xi to fall short of his goal.
The start of the CCP campaign to curb the growth of technology companies has forced them to close or significantly reduce the size of their operations.
Last year, New Oriental Education, China’s largest tutoring service provider, laid off 60,000 employees after the CCP wanted to “reorganize” the operations of companies operating in the education sector.
In addition, the CCP’s “zero-COVID” policy halted production in China. Factories shrinking or stopping production make it harder for this year’s college graduates to find work. As a result, China’s youth unemployment rate hit a record high of 19.9% in July and 18.7% in August.
Shuli Ren said that the Chinese people have become poorer in the past year. But, so far, the CCP has remained silent about the adverse effects on the economy that it did not anticipate.
Ren also pointed out the irony of the determination to promote “Common Prosperity.”
She said that the CCP’s crackdown on major tech and real estate industries aimed at promoting shared prosperity has scared off investors.
The “Three Red Lines” policy introduced by the CCP aims to limit the amount of money borrowed by real estate companies and shrink the real estate bubble.
But the policy has hurt property developers’ ability to sell properties to pay off debts, triggering a series of defaults and plunging China’s property market into crisis.
In concluding her article, Ren commented that the CCP’s common prosperity has turned into “Common poverty.” No one is feeling happy right now.