Posted on 03/19/2025 5:24:20 AM PDT by Cronos
China’s leaders have spent the past week unveiling their plan to steer the world’s second-largest economy through looming challenges by transforming the country into a technological powerhouse and ramping up spending to hit an ambitious growth target.
.. 1. Focus on AI and ‘industries of the future’ Artificial intelligence (AI) was the hot topic at this year’s gathering, with China’s enthusiasm for the technology supercharged by the breakout success of tech firm DeepSeek.
China’s economic tsars on Thursday announced a state-backed fund to support AI and other technological innovations, which they estimated would attract nearly 1 trillion yuan ($138 billion) in capital over 20 years from local governments and the private sector.
That’s all part of Xi’s overarching vision: to transform China’s industries with high-tech innovation and ensure the country is technologically self-sufficient in the face of US efforts to limit Chinese access to American technologies over security concerns.
2. Boosting demand and juicing growth Officials also announced they would back their ambitious “around 5%” growth target with more robust government spending, raising the budget deficit to around 4% of gross domestic product, the highest level in decades
Chinese officials in recent days outlined efforts geared to boost consumption like extending a program for trading in old appliances, and said they would create jobs, raise wages, promote free preschool education and expand elder services.
(Excerpt) Read more at edition.cnn.com ...
https://www.china-briefing.com/news/china-two-sessions-2025-policy-legislative-budget/
The Draft 2025 Budget provides more details on the composition of the various debt allocations that were introduced in the 2025 GWR, as well as outlining further debt allocations to support domestic demand, promote consumption, enhance social welfare, and maintain fiscal stability. These include:
Special long-term government bonds: A total of RMB 1.3 trillion (US$179.7 billion) in special long-term government bonds will be issued, an increase of RMB 300 billion (US$41.5 billion) from the previous year, of which:
RMB 800 billion (US$110.6 billion) will be allocated to enhance support for “Two Major” projects (refers to projects that implement major national strategies and construct security capabilities).
RMB 500 billion (US$69.1 billion) will be directed towards strengthening and expanding the implementation of “Two New” policies (refers to large-scale equipment upgrades and consumer goods trade-ins).
General budgetary allocations:
RMB 7.35 trillion (US$1 trillion) has been arranged for central budgetary investments, an increase of RMB 35 billion (US$4.8 billion) from the previous year, ensuring alignment between investment plans and budget arrangements.
RMB 10.3 trillion (US$1.4 trillion) in central government transfer payments to local governments, an 8.4 percent increase from 2024, of which:
RMB 2.7 trillion (US$373.3 billion) will be allocated for equity transfer payments.
RMB 479.5 billion (US$66.3 billion) will be allocated to support county-level fiscal guarantees.
High-quality development incentive funds: RMB 50 billion (US$6.9 billion) has been earmarked to encourage local governments to proactively develop their economies and increase revenues.
But, all of the propaganda for the chinks on FR assures us that they (chiner) is doing fabulously well.
High tech power = invade Taiwan.
I don’t believe artificial intelligence will pull them out of their economic slump their was machine is expanding to fast.
If it doesn’t include dumping communism, don’t bother.
More government spending on programs that do not increase the wages or buying power of the citizens.
I am in China frequently, people are not buying big ticket items - they are going out to restaurants. The culture is food based. Like many of the shopping malls this entire program they are discussing it’s just putting a fancy sign in the window of an empty store..
A couple of other problems the Chicoms have is that there is deflation and massive corruption. People don’t want to buy stuff now if they know it will be cheaper later. Corruption takes money away from the local governments that Xi(t) wants to fund all this. The locals don’t want to give up this source of income and put it under the control of the central government.
Dictatorial command economies are very poor at money management, way worse than even ours.
Truly speaking, they aren’t communist, more like a technocracy
Since Deng Xiaoping’s reforms in the late 1970s, China’s embraced a “socialist market economy.” Private businesses thrive—think tech giants like Alibaba and Tencent—capitalism runs wild in special economic zones, and billionaires exist alongside a growing middle class. Property rights, while not absolute, are real for individuals buying homes or leasing land. The CCP still keeps a tight grip—censoring speech, crushing opposition, and steering the economy with five-year plans—but is seems to be more like state-managed capitalism than pure communism.
In fact if you look at the Das Kapital vision - stateless, classless, no private property, then China is 100% definitely NOT communist.
Authoritarian yes, but not communist - might even go with fascist or technocratic
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