‘Street vendor economy’ policy u-turn signals intensified power struggle in Beijing
蘋果日報 2020/06/07 12:10
Beijing’s U-turn in its policy to encourage the unemployed to become street vendors may signal a deepening rift between China's paramount leader Xi Jinping and Premier Li Keqiang, sources told the Apple Daily.
The Publicity Department of the Chinese Communist Party on Thursday reportedly instructed state media at central government level to stop mentioning "street vendor economy" in their reports as the reference embarrasses the Chinese leadership.
Sources have confirmed to Apple Daily that Chinese state media did receive such instructions and that the development indicated the struggle between Xi and Li for control over the economy had intensified.
The Publicity Department of the Chinese Communist Party on Thursday reportedly instructed state media at central government level to stop mentioning "street vendor economy" in their reports as the reference embarrasses the Chinese leadership.
Sources have confirmed to Apple Daily that Chinese state media did receive such instructions and that the development indicated the struggle between Xi and Li for control over the economy had intensified.
Li, in a recent visit to the province of Shandong, promoted the policy as a way to boost the economy at a time when millions have lost jobs amid the coronavirus pandemic. Li said the makeshift open-air street stalls were "important sources of jobs." While China's official unemployment rate hovered around 6% between February to April, a Chinese brokerage firm in April was forced to retract an analyst report that estimated the actual figure to be over 20%.
Many parts across China since then have taken a much more lenient approach to street vendors. The policy marked a departure from Beijing’s previous efforts since 2017 to “clean up” the city’s image by kicking out street vendors.
But Beijing also worries about the implications of a growing "street vendor economy" on China's financial system, a source said, pointing to a scenario where many of those who have borrowed from banks to set up physical shops would fail to repay their debts should they face stiff competition from street vendors.
"Coming from the Communist Youth League faction, Li doesn't understand how the economy works," the same source said. "Nowadays most people shop online in China. Who would still go to open-air stalls?"
Wu Qiang, an independent political scholar in China, told Apple Daily that Li has been advocating greater economic freedom for individuals and a freer market since he became premier in 2013. Xi, on the contrary, has been eager to increase the state's control over the economy.
"The conflict [between the two] has been intensifying over the past eight years and now this row over street vendors exposes it," Wu said.
But Beijing also worries about the implications of a growing "street vendor economy" on China's financial system, a source said, pointing to a scenario where many of those who have borrowed from banks to set up physical shops would fail to repay their debts should they face stiff competition from street vendors.
"Coming from the Communist Youth League faction, Li doesn't understand how the economy works," the same source said. "Nowadays most people shop online in China. Who would still go to open-air stalls?"
Wu Qiang, an independent political scholar in China, told Apple Daily that Li has been advocating greater economic freedom for individuals and a freer market since he became premier in 2013. Xi, on the contrary, has been eager to increase the state's control over the economy.
"The conflict [between the two] has been intensifying over the past eight years and now this row over street vendors exposes it," Wu said.
Li also surprised many when he revealed during China's annual parliamentary session last month that around 600 million people in China earn a monthly income of just 1,000 yuan (US$140). His comments came as a contrast to Xi’s top priority and goal set years back to eradicate poverty by 2020.
---------------------------------
Apple Daily’s all-new English Edition is now available on the mobile app
To know more: https://bit.ly/2yMMfQE
Apple Daily’s all-new English Edition is now available on the mobile app
To know more: https://bit.ly/2yMMfQE
Apple Daily mobile app latest version DOWNLOAD NOW
