BEIJING: To prepare for a possible "decoupling" from the global economy, analysts claim China is reviving the Mao Zedong-era institution that was once a cornerstone of the Socialist command economy.
Earlier this month the 20th Chinese Communist Party Congress promoted Liang Huiling, who oversees a state-run system of "supply and marketing cooperatives," to the party's central committee.
Among other signs that leader Xi Jinping is moving the country away from market economics and closer to a state-dominated economy. This marks a significant departure from the market-oriented economic policies of the past 40 years.
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Economic analyst Chen Jun told the media that "this is a return to the state-run collective economy," adding that "it's too scary - they don't want the economy anymore. They may decide they are no longer a private corporation." want.
Chen referred to the recent losses on the Shanghai Stock Exchange, as well as a drop in the prices of luxury apartments in the city.
By using the pandemic [tracking app], they are also controlling how the population moves across the country. According to Chen, they are shifting energy consumption to businesses involving the military and heavy industry.
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They don't worry about the economy because they believe that as long as people have enough to eat, they will be fine, he continued.
The supply and marketing cooperative system, which was used as recently as the 1980s to manage general stores in rural areas, according to a senior Chinese media executive, who asked to remain anonymous for fear of retaliation, was never was also not terminated.
This is true, even though market economics promoted by the late Supreme Leader Deng Xiaoping in 1979 eventually replaced it with commercial supply chains and distribution networks.
In the face of deteriorating relations and further economic isolation from the rest of the world, he said he hoped the government would use it as a backup logistics and supply system to ensure emergency preparedness and food security.
Current affairs analyst Li Feng, who is based in Hunan, claimed that the government has been quietly reinstating funds to supply and marketing cooperatives over the years, while also hiring new employees - all one out of plan. without making a big deal. State-run media.
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From the federal government to the provincial governments, they are quietly making a comeback with little fanfare. Lee suggested that the economy could be fragmented and revert to the planned economy of the past once our relations with the West had completely deteriorated.