China: CPC central committee meets amid gloomy economy

Chinese President Xi Jinping attends the opening session of the Chinese People's Political Consultative Conference (CPPCC) at the Great Hall of the People in Beijing on March 4, 2021. AP - Andy Wong

Text by: RFI Follow

2 min

The 19th Central Committee of the Communist Party of China (CPC) is holding its sixth plenary session in Beijing from Monday, November 8, 2021. It will last until next Thursday.

The context is difficult for the leader Xi Jinping, in particular because of the slowdown of the economy which continues.

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Some 400 senior leaders, gathered behind closed doors.

The contents of the debates of the CPC Central Committee have not been published, but a key resolution on the main achievements and historical experience of the Party's hundred years of efforts should be considered.

The move is seen as an attempt to prepare for Xi Jinping to stay in power at the Chinese Communist Party Congress next year.

Especially since the country's economic data is bad for him.

In the third quarter, Chinese growth stalled with barely 4.9% of GDP achieved over one year.

Unheard of since the 1990s.

Xi Jinping's personality was the subject of a cult following in the Chinese state media before the 20th CCP Congress in 2022. Here life, travels and verbatim by the China New Agency. 👇 https: // t. co / y4t2ofncdG 🧵 pic.twitter.com/SbtzV0xrog

- Stéphane Lagarde (@StephaneLagarde) November 7, 2021

The causes of this slowdown are multiple.

Starting with weak domestic demand, the traditional engine of Chinese growth.

In addition, Beijing has slowed down investments by local authorities, by tightening the conditions for granting loans.

The real estate sector, the other engine of the Chinese economy, is in the midst of a crisis, as evidenced by the setbacks of developer Evergrande.

► To listen: Will Evergrande drag the entire Chinese economy into its sinking?

Paradoxically, this slowdown in the economy does not seem to concern Xi Jinping's government.

The president does not cease insisting on the quality of the growth and the move upmarket of the Chinese industry.   

In the meantime, many Chinese households could suffer from an early winter, which is happening in northeast China.

With cold waves, and snowfall.

However, the country is already suffering from electricity shortages which are pushing up production costs and penalizing supply chains.

First day of entry into winter and first snowfall, Beijing.

#jardindhiver pic.twitter.com/dAjQLdV1Ah

- Stéphane Lagarde (@StephaneLagarde) November 7, 2021

► Also read: Chinese growth is slowing down due to power shortages and real estate

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• Xi Jinping