After the 20th national congress of the Chinese Communist Party (CCP) was organized in mid-October, state-run supply and marketing cooperatives rose rapidly.

According to Bjreview, Central China’s Hubei Province is reconstructing 1,373 cooperatives in almost every one of its counties and towns. Also, Beijing has had many outlets since 2018. Additionally, Ningxia Hui Autonomous Region in northwest China and Chongqing Municipality in the southwest have a coverage rate of township-level supply and marketing cooperatives reaching more than 70%.

A state supply and marketing cooperative was initially set up in July 1950. The organization was later renamed the All-China Federation of Supply and Marketing Cooperatives (ACFSMC) in July 1954 to unify the management of the country’s supply in the era of material scarcity.

However, the ACFSMC failed in the past, and then China moved to reform and open up and introduced a market economy in 1978. And recently, the return of these cooperatives has attracted public attention and raised many doubts.

As reported by Liberty Times, based on the historical view, it can be speculated that it is related to the lack of local materials because of a series of natural disasters, controlling COVID pandemic measures, etc. In addition, many experts believe the appearance of many cooperatives exposes the impending economic crisis in China.

Additionally, the sudden revival of the cooperatives is also making many people concerned about war. China may be returning to the country’s “internal economic circulation” era. Leader Xi Jinping wants to consolidate the socialist model, so it is inevitable to use supply and marketing cooperatives to gather materials from many places and establish cooperatives. Greater state control of supply chains and prices will shore up the domestic economy in case of war or emergency.

Sign up to receive our latest news!

By submitting this form, I agree to the terms.