November 3, 2022: The Rich Chinese Leave China after 30th October
BEIJING: Major stock markets fell sharply after the 20th National Congress of the Communist Party of China (CPC) last month. This was contrary to the trend after the conclusion of the previous Congresses. According to the report of the Financial Post, China’s rich people have started fleeing the country after the 20th Central Committee of the Communist Party of China, at its First Plenary Session on 30th October elected Xi Jinping as its General Secretary for a third term. This has paved the way for Xi Jinping’s election as the President of China for a historic 3rd term in March 2023.
The market value of luxury homes in Shanghai is said to have fallen by about 40 per cent. According to analysts, this is a mirror of the market’s mood regarding the future of the country. Xi Jinping has chosen an entirely new team of his close followers as the Politburo to eliminate the chances of any political challenge.
China’s policies are pointing towards an increased State control of economy, a more aggressive foreign policy for neighboring countries and a clamping down on the rights of the Chinese citizens in the name of reducing corruption and reducing disparity in wealth. President Xi Jinping’s speech at the 20th Congress of the Communist Party of China (CPC) indicated that the wealthy would be brought under a greater control of the Party. Xi Jinping’s government has earlier assumed greater control over the hi-tech sector, property sector, coaching business, online gaming etc.
Xi repeatedly referred to ‘common prosperity’ (shared prosperity) in his speech. He said- ‘We will keep the sources of wealth collection and distribution of income under strict rules. We will protect the money earned legally but adjust the excessive income and curb illegal income.” Experts say that the notion of shared prosperity is not new in China. But in recent years, Xi Jinping has started to implement it more strictly. Analysts say that a variety of new taxes will be imposed on the wealthy, ostensibly for the purpose of helping poor families, creating more employment opportunities, strengthening social security, and providing better public services. Some experts have said that the difficulties that private entrepreneurs face in China may increase in the coming days.
According to Alicia García Herrero, the chief economist of the Asia-Pacific region of the agency named Netixis, has warned the wealthy people through the South China Morning Post, Hong Kong. However, given the economic difficulties that China is facing right now, it is likely that the policy of redistribution of wealth will be implemented slowly and carefully.
—by Team DiGiNews360