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Xi Jinping’s way of handling country’s capitalists, result in China’s economic troubles

  China has a tumultuous financial year 2021 with several businesses being damaged. None other than the Chinese leader, Xi Jinping is getting the blame for this financial fiasco. His vendetta against the businesses which tried to come out of the ruling party’s control, led to this situation.A year back, his stance was to reign in the private businesses and eminent personalities that did not follow the ruling party line to a tee. Consequently, there were country-wide crackdowns and regulations against the big corporations along with their leaders. Among them, the most well-known personality is Jack Ma, the co-founder of Alibaba. Besides, tech giants like Baidu, Tencent and Bytedance, who owns TikTok, also faced several regulatory steps. While the policy of Xi Jinping offered a short term comfort and calmness, the fallout out of it was catastrophic. Without the leader taking a prominent stand to lead, the larger corporations are deviating from a clear path ahead. Therefore, they are facing a huge loss in their annual earning, hence the country’s economy is hurting severely. The Alibaba Group had to change its plans to make a part of the company public. They are way down from the predicted growth rate for the year as well. The earning per share of the company fell sharply, resulting a massive loss of wealth, hindering the progress. There have been layoffs in almost every segment of industries, which are in any way related to tech and real estate. One of the major losses of fortune happened with the Evergrande group who lost US$17 billion alone, whereas the combined loss in the industry was around US$46 billion. The overall decline across tech and related sectors, has resulted in a demand crunch around every sectors. However, the real estate sector has faced the most severe end of it. The rising unemployment numbers, a decline in Chinese stocks and currency value, along with a steady deflation rate, are adding more fuel to it. Highest possibility of a severe drop is there in the housing market, which may even end up affecting the global market. In the Xi Jinping regime, he is gradually trying to portray himself as the supreme leader in the country. Evidently in various steps taken by him against the eminent figures. Jack Ma is yet to be seen in a public appearance recently. It is bringing down the morale in Alibaba Company and the share price too. China has always been restrictive when it comes to free growth. In every aspects of life, be it economic prowess or liberal life-view, the country-sponsored ways were prevalent. Under the leadership of Xi Jinping, the country has prospered a lot. However, of late there is micro-management in every step, which hinders progress. The state tends to control major aspects of trade in every country around the globe. In the case of China, the government is down to petty vengeance. In short term, it may work well but in the long term, it damages the character and economic spine of the country. Xi Jinping is putting distance between himself and all the chaos, blaming it on the others. While he is trying to clean his image, it is to be seen how severe is the damage done by the steps conferring his administrative policy.
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