Xi Needs to Rethink Policy Priorities to Prevent China’s “Lost Decade”
Writing in the July/August issue of Japan Spotlight, Senior Fellow Ke Long reviews China’s economic development over the past decade under Chinese President Xi Jinping, whose chief policy priority has been to maintain political and social stability by strengthening his personality cult and enhancing the authority of the Chinese Communist Party.
Ke Long points to the lack of economic policy experts in Xi’s current cabinet and sees the 20% unemployment rate among those between the ages of 16 and 24—one byproduct of Beijing’s zero-COVID policy—as a potential source of social instability.
Xi’s focus on strengthening state-owned enterprises is misplaced, Ke argues, as developments over the past three decades clearly show that private-sector companies create more jobs, make greater contributions to GDP growth, and pay more taxes.
To prevent China from sliding into a “lost decade,” Beijing must push ahead with reforms toward liberalization, deregulation, and decentralization; amend its wolf warrior diplomacy to regain the confidence of global society; and promote closer dialogue with Japan.
“The Rise & Fall of the Chinese Economy Under Xi Jinping,” Japan Spotlight
Profile of Senior Fellow Ke Long
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