China evolves into Capitalism

Of the 2,964 delegates in the National People’s Congress, only two delegates voted against abolishing the term limit and three members abstained. This is a hint, according to the Guardian, of the outrage that created ripples in the liberal circles. The mumbling of dissent, from outside of the upper echelons of the party, were reported. But, the online censors soon interfered and blocked the discussions. BBC’s Chinese correspondent Stephen McDonnell writes, “It is now hard to see Xi Jinping being challenged in anyway whatsoever. He has amassed power the likes of which has not been seen since Chairman Mao Zedong. “

The time-limit for the presidency was introduced by Deng Xiaoping in 1982 in order to prevent a repeat of the bloody excesses of the cultural revolution (1966-76) under Mao Zedong. In scrapping the time-limit, the opponents highlight the risk as it may plunge China into a new age of political turbulence and one-man dictatorship. Apart from his elevation to a life-presidency, Xi Jinping's political theory has also been enshrined in the constitution, giving him the same status as Mao Zedong and former paramount leader Deng Xiaoping.

Maoism was a combination of communism and nationalism. ‘Dengism’ was supplementary to Maoism, but more pragmatic in approach, an ‘open-door' policy- as it was called – towards capitalism. Now, Xi's approach seems more capitalistic though he calls it ‘socialism with Chinese characteristics.’ This helps the state to play a major role in controlling the markets and the upper stream of industries primarily for the maximization of the state (party) power without legal limits. But the unfortunate aspect that the opponents point out is that the economic strength attained by the nation doesn't positively affect the citizens. 33 percent of the country's wealth, it is alleged, is in the hands of 1 percent of population.

Xi Jinping's ‘socialism with Chinese characteristics’ seems an evolution of Deng Xiaoping’s formula of ‘state-led capitalism.’ Is it a blend of market economy and Socialist economy? Observers are confused. There are more than hundred companies owned by the Chinese state and also global companies with huge foreign investment as well. American corporate giants such as Apple Inc, Boeing Co and Intel Corp etc. rake in huge revenue from China. General Motors and Volkswagen have invested billions and Ford is rushing to catch up by adding production capacity and expanding its dealer network in China. Investors are waiting to see how Xi Jinping would push through the reform as the world’s second largest economy. China, as a rising star, is investing heavily for the reorganisation of their traditional People's Liberation army. They have been increasing the defence budget by 7 per cent per annum. And now, for 2018 it has been further hiked up to 8.1 percent. While addressing the nation, Xi Jinping has been referring to China as a ‘great power’ and ‘strong power’- a departure from the style of earlier leaders. His intention seems to be to transform the PLA into one of the world's top militaries by 2050. He envisages a comprehensive reform in its weaponry and organisation, in its ability to fight in a complex environment and achieve regional pre-eminence and protect their interests across the world. While China’s military reforms are proceeding apace, it is making infrastructure for new bases in Djibouti and Gwadar and port- call rights in Sri Lanka and Maldives. It is also developing hypersonic glide vehicles known as DF-ZF, capable of defeating all existing missile defence systems.

However, Xi Jinping's ‘Chinese dream’ discourse embodies Chinese patriotism. Patriotism is good unless accompanied by a diminishing tolerance for dissent and criticism. But if it is accompanied by aggressive nationalism, religious fanaticism and xenophobia, it may slip into the politics of fascism. Let us hope Xi will not repeat the horrors experienced during the era of Mao Zedong.