Chinese Economy and “Common Prosperity” Policy | Virus Origin “Global Opinion War” | China Update

Chinese Economy and “Common Prosperity” Policy | Virus Origin “Global Opinion War” | China Update

what’s up everybody welcome to another episode of china update where i try and help you guys keep on top of the world’s number two economy my name is tony this week we’re going to do this episode a little bit differently rather than looking at about half a dozen major developments in china over the last seven days we’re going to do a deep dive into two major ongoing developments in the people’s republic of china the first will be looking at the continued discussions in the mainland on the new policy direction of common prosperity and what this could mean for the world’s number two economy in terms of major economic changes the second as there is more global attention on the possible lab leak hypothesis there has been a strong state media reaction to this as the prc pushes its own narratives and so we’re going to be looking at how the prc has responded let’s jump in talk on common prosperity and what it means for the world’s number two economy continues into this week it’s important that we follow what experts economists academics and policy makers are saying in china itself to get an idea of where this new policy direction may be headed last week we discussed common prosperity as well and i gave my own analysis regarding my concerns with with this new policy direction and the challenges that policymakers in beijing will be facing in trying to pursue it you guys can check out that last video up here for that analysis but for now let’s look at how this new direction is being discussed and debated within china itself the first question of course is what is causing this push towards common prosperity now what is the motivation quote the new focus is on achieving the goal of common prosperity and social equality china’s economic development has entered a new stage and it is important to ensure that all people enjoy the fruits of reform and development in a fair way we must promote the common prosperity of all people as it is the foundation of the people’s happiness on which we can continue to strengthen the party’s long-term governance and quote as we discussed last week inequality is a major challenge for the people’s republic of china quote china’s wealth gap is more salient than its income gap in 2020 the wealth gap increased despite the trend of alleviation in recent years between 2000 and 2015 china’s wealth genie coefficient rose from 0.599 to 0.711 as an aside to put that in perspective in 2019 the us genie coefficient was 0.48 continue with the quote quote the covert 19 pandemic drove the 2020 figure back to 0.704 in 2020 china’s richest 1 held at 30.6 of the total wealth in china and quote and the government is very aware of this issue quote realizing common prosperity is more than an economic goal it is a major political issue that bears on our party’s governance foundation we cannot allow the gap between the rich and the poor to continue growing for the poor to keep getting poorer while the rich continue getting richer we cannot permit the wealth gap to become an unbridgeable gulf and quote okay so that is the motivation behind common prosperity policies but what are china’s economists saying about this new policy direction well the concerns circle around whether or not the government turns to an overzealous redistribution which hurts wealth creation innovation and general economic dominism and that this needs to be avoided quote we can’t realize common prosperity through robbing the rich and aiding the poor or the pursuit of egalitarianism because doing so will only lead to common poverty the priorities should be focused on increasing incomes of people on the bottom rung of society the prerequisite of common prosperity is that the pie must continue to get bigger and quotes and quotes however when formulating policies to narrow the income gap we must consider economic laws otherwise we will do bad things with good intentions for example if china unilaterally introduces an inheritance tax it will lead to capital flight which will not help improve workers incomes but will also affect overall economic growth given the transnational mobility of capital the taxation of capital must seek international cooperation and quote it seems the central government is aware of the concerns among wealthier chinese business people and economists with top officials coming out to calm people down on friday quote we allow some people to become well off first who then inspire and help latecomers we will not opt for a robbing the rich for the poor approach and quote state media too produced similar stories on friday seeking to manage the messaging and calm people of course blaming westerners for the confusion quotes common prosperity is not egalitarianism it is by no means robbing the rich to help the poor as misinterpreted by some western media protecting legitimate private property has been written into china’s constitution end quote it’s important too that we do not confuse this broader policy direction of common prosperity with the more narrowly defined crackdown on technology companies and the private education sector which we have seen and have covered on here in recent weeks in recent months though there is some limited crossover in the goals of policymakers harvard economist and monetary policy committee member at china’s central bank the dalkway gave an interview this week to make just this point quote common prosperity is achieved by providing more public services and antitrust is another topic antitrust is at the corporate level which means that companies should not abuse their market power if you mix the two together you get a lot of misunderstanding and policy misdirection ends quote like i said common prosperity talk may be here to stay and may have profound effects on china’s economy so we will continue follow us following it very closely if you guys are enjoying the episode don’t forget to hit that like button it tells the youtube algorithm that this is real content from a real creator which is very useful when you are discussing sensitive subject matter and you’re a small channel i release one of these every week so if you think you’re getting some sort of value from these episodes from these videos maybe consider subscribing and you’ll get notified when i release these i also want to take this opportunity to thank my patreon supporters thank you so much for supporting the channel i really appreciate your support cheers on tuesday the us director of national intelligence delivered a report to the u.s president joe biden on the origins of the chronovirus pandemic though the report is classified media in the u.s reports that there were no firm conclusions found in the report and that u.s officials are saying that the intelligence community has not yet determined whether the disease was the result of an accidental leak from a laboratory or laboratory for our us friends in or if it emerged naturally from an animal to human spillover event late in the week it was being reported in the u.s that one u.s intelligence agency assesses with quote-unquote moderate confidence that the coronavirus most likely emerged from a chinese government lab in han while four u.s spy agencies and the national intelligence council only have quote unquote low confidence this is all within the context of course of renewed global attention on the loud league hypothesis after almost a year of the hypothesis being somewhat censored in mainstream political and scientific discussions particularly in the united states there are more voices calling for another examination of the han institute of virology including from the head of the world health organization now if it was established that covert was the result of an a lab leak even an accidental one it would cause incredible reputational damage for the people’s republic of china due to the widespread suffering the pandemic has caused a global opinion that it was caused by a lab leak it could be more damaging to china’s reputation than the war in iraq or the global financial crisis was for the united states the people’s republic of china has continued to assertively express that it is that it has acted in a highly responsible manner throughout this international crisis with more attention on the lab leak hypothesis now the prc state media apparatus has aggressively pushed its own narrative now let’s take a look at what the media in china are saying state-run uh cgtn reports that chanshu permanent representative of china to the u.n office in geneva and switzerland on tuesday wrote to the director general of the world health organization further reiterating china’s position on covert 19 origins tracing quote the hypothesis that the introduction of tsar’s kovi-2 into human population was caused by a lab leak in the han institute of virology is extremely unlikely chen said if some parties are of the view that the lab leak hypothesis remains open it is the labs of fort detrick and the university of north carolina in the us that should be subject to transparent investigation with full access chen added chinese state media this week too is reporting that chinese research institutions claim that the us is quote manipulating global public opinion by practicing origin tracing terrorism end quote and if that wasn’t enough this week state-run global times ran a piece comparing discussions of the lab league hypothesis internationally to the practices of nazi germany quote repeat a lie often enough and it becomes the truth this is a famous law of propaganda by joseph goebbels the reich minister of propaganda of nazi germany from 1933 to 1945. it is a traditional trick frequently used by western countries end quote and went on to say quote now on the coveted 19 origins tracing the goebbels effect the tendency to believe false information to be correct after repeated exposure is now manifested again by washington’s politicians today by passing the buck and smearing china they have played the role of a modern goebbels they first claimed that covert 19 leaked from the institute of virology and then they have kept on repeating this lie end quote okay guys this was a little bit shorter than usual next week we’ll go back to the regular style of the program where we look at several developments over the week but this is it for this week i hope you enjoyed it throw your comments below it’s always a pleasure to hear from you guys and until next time i hope you’re staying safe and staying sane see you next time on china update
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Chinese Economy and “Common Prosperity” Policy | Virus Origin “Global Opinion War” | China Update

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