A weekend article in the Wall Street Journal says that
- Chinese Communist Party Chairman Xi Jinping has deep-rooted philosophical objections to Western-style consumption-driven growth, people familiar with decision-making in Beijing say.
- Xi sees such growth as wasteful and at odds with his goal of making China a world-leading industrial and technological powerhouse, they say.
- Xi believes Beijing should stick to fiscal discipline, especially given China’s deep debt. That makes stimulus or welfare policies akin to those in the U.S. and Europe less likely, the people said.
Those that hold the opposite view to Xi believe that accelerating China’s transition to a more consumer-led economy, such as that of the U.S.would make growth more sustainable in the long term. Good luck making that point to the supreme leader though.
The Journal is gated, the link is here if you are able to access it.
