Xi Jinping Struggles to Control China’s Economy and Avoid Chaos


News Analysis While the U.S. Federal Reserve and other central banks in the developed world are preparing to curb high inflation by winding down pandemic stimulus and raising interest rates, Chinese leader Xi Jinping is attempting to stimulate China’s economy, as he fears public unrest. “Once economic and financial risks are mishandled, they can easily be transmitted into the social and political sphere,” according to a recent statement by the Central Political and Legal Affairs Commission of the Chinese Communist Party (CCP). Beijing claims that China’s GDP rose by 8.1 percent in 2021, but that it is taking expansionary monetary policy because growth in the final quarter of 2020 was only 4 percent, well below the 5 percent level that the CCP considers acceptable. Many experts believe Xi commanded interest rates to be cut in order to mend the economy and avoid social discord. Last year, Xi implemented a number …

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