A Stepping Stone

Xi’s new concept on modern socialism inspires other developing countries.

By YASIR HABIB KHAN

AT a critical time when various political and economic systems in developing countries are struggling to survive, China’s governance system known as “socialism with Chinese characteristic for a new era” is a silver lining. Its credentials to deliver excellence and meet people’s needs, despite all odds, make it fit to serve as an exemplary model to be followed.

There is no doubt that Chinese President Xi Jinping is the key architect of an emerging regime and his “thought,” now enshrined in the Constitution of the Chinese Party of Communism (CPC), is the guiding principle. Xi’s “thought” is a complete package that transcends geographical boundaries, race, color, language, religion, and ethnicity. It does not revolve around Chinese’s people progress, instead focuses on sharing fortunes to those living in developing countries that desire to grow.

Questions have arisen as to why Xi’s Thought on Socialism with Chinese Characteristics for a New Era has single-handedly set the tone for development and inspired developing countries to thrive. The answer is that the president’s iconic vision has already proved successful at making Chinese society prosperous and stable.

Over the last 90 years, Chinese living standards have significantly improved. Urban and rural employment has continued to swell. Individual income has grown rapidly. Household assets have steadily blossomed. People's daily needs such as clothing, food, housing, and transportation are being fulfilled. Basic pensions have continued to see substantial increases. Meanwhile, a new type of social security system is emerging. The whole population is now basically covered by medical insurance while complete urban and rural healthcare systems are taking shape. Construction of low-income housing has also been accelerated.

One of the unique credentials of China’s government is its capability to survive against all crises in the political, economic, and societal spectrums.

This resilience makes a real difference.

Under the theme of socialism with Chinese characteristic ignited by Xi’s dynamism, China has stood out as the second largest economy in the world. China’s GDP has swelled to around 74.4 trillion yuan in comparison to developed economies that have suffered stagnation and stifled growth so far. Its economic outlook for the year of 2017 is forecasted around 6.5 to 6.7 percent growth, which is buttressed by strong domestic consumption, solid wage growth, urban job creation and public infrastructure investment despite internal pitfalls, and a worldwide economic slump.

Xi’s leadership transformed China’s US $11 trillion economic aggregation from an investment- and industry-driven model to a consumption- and service-oriented one. China’s consumer economy is projected to grow US $6.5 trillion, by 2020. This factor has consolidated a concrete foundation for future growth.

China's currency, the RMB, has been internationalized and its share has increased to 1.98 percent (as of June 2017) for international payments. The rise of China’s currency has enabled China have an increased saying in international markets, aiming to offset lopsided monetary policies once controlled by the U.S. and Europe.

The world also saw remarkable poverty alleviation efforts driven by Xi’s revolutionary policies. About 60 million people were lifted out of poverty over the past five years, with the poverty headcount ratio falling from 10.2 percent to less than four percent. It is expected that by 2020, there will be no more poverty in China.

For a variety of reasons, even developed countries have to cut jobs in the public and private sectors. For China, sometimes these job-cuts have proved beneficial. Economic policies benefited from administrative reforms to stimulate market vitality and social creativity did not let the situation get out of control. China has continued to see a rise in new start-ups and business ventures. According to the State Administration for Industry and Commerce, about 16,000 enterprises are registered each day in China, providing an ever-expanding environment for employment. More than 13 million new jobs have been created every year in the past five years in urban areas, keeping the registered unemployment rate around four percent.

China has been acclaimed by making steady progress in agriculture industrialization. As many as six types of projects has been launched for the industrialization of modern agro-technology, so as to foster advanced technology for agricultural production, and increase foreign earnings from exports of farm products. Plans to invest RMB 3 trillion into modernizing the country’s agriculture by the year 2020 are in full swing.

China’s globalization aptitude is the answer to those who shy away from accepting China as emerging global leader. It lays the foundation of a new level of openness and investment measures. China’s vision of going global is inspiring Chinese companies to rise above their domestic persona and become global leaders.

Progress is already underway, giving the world a glimpse of what benefits Xi’s “new era” will yield. For instance, working to establish global appeal, Chinese textiles giant Shandong Ruyi Technology bought French fashion retailer SMCP and made smooth entry into the Paris stock market recently. A senior manager of JP Morgan’s global investment banking in China commented that, such Chinese companies are motivational success stories of their businesses with Chinese characteristics. International investors have been observing their global rise and are poised to follow them.

"Despite the prevalent trend of protectionism, emerging China has been upholding the supremacy of globalization. China's economic stability and commitment to free trade can only benefit all countries," Helen Sawczak, National CEO of the Australia China Business Council opined.

Xi’s “thought” promises peace and a shared destiny which shows respect and equality to every country. It does not nurture hegemony, nor will ever colonize another country. China never claims itself as a superpower to control the world order. The proven gesture is enough to let Chinese wisdom prevail to inspire other countries to pursue the path of friendliness, development, and stability.

————

YASIR HABIB KHAN is a senior journalist working for China Radio International Online, China Plus and various national and international newspapers.