Xi Jinping: "China Has Ample Growth Potential... Common Prosperity Is About Expanding the Pie"

Klaus Schwab, Chairman of the World Economic Forum (WEF), is watching Chinese President Xi Jinping deliver a special speech on the 'Davos Agenda' via video on the 17th (local time). (Photo by AFP)

[Asia Economy Reporter Jo Yoo-jin] Amid growing concerns over the sharp slowdown in the Chinese economy following a barely 4% growth in the fourth quarter of last year, Chinese President Xi Jinping emphasized that China’s growth potential remains sufficient. Regarding the ‘Common Prosperity (共同富裕)’ policy, which serves as the foundation for his long-term rule, he clarified that it is "about dividing the pie based on the foundation of growing the pie."

In his speech at the World Economic Forum (WEF) ‘Davos Agenda 2022’ held virtually on the 17th (local time), President Xi stated, "The pursuit of common prosperity is not about egalitarianism, but about making the pie bigger (held by the wealthy and enterprises) and then reasonably distributing it through appropriate institutional arrangements."

He emphasized, "When the tide lifts all boats, everyone will receive a fair share of development, and the benefits of development will be delivered to all people in a more substantial and equitable manner."

He also warned, "As major economies struggle with rising inflation, hit the brakes abruptly, and reverse monetary policies, negative ripple effects will occur," adding that developing countries will bear the brunt of these changes.

He continued, "Global supply chain issues, energy shortages, and rising raw material prices are deepening crises between countries and increasing uncertainty about economic recovery." However, President Xi noted that China achieved 8% growth relative to its gross domestic product (GDP) last year, and despite significant pressures from domestic and international economic changes, China’s economic potential remains sufficient.

Regarding the COVID-19 pandemic, he stated, "Vaccines must be utilized as a powerful weapon to the fullest extent to reduce global immunity gaps," and asserted, "Strong trust and cooperation are the only and correct ways to overcome the pandemic."

He added, "The world must create new opportunities amid the crisis caused by COVID-19," and said, "While 190 small boats cannot survive the storm, a large ship is strong enough to face the storm, so the international community must strengthen solidarity and cooperation in the face of global crises."

Alongside this, President Xi expressed confidence that China, continuing its ‘Zero COVID’ lockdown measures, will safely and excellently host the Beijing Winter Olympics opening next month.

President Xi’s speech comes amid Western criticism over Hong Kong’s democratic suppression, human rights abuses in the Xinjiang Uygur Autonomous Region, and increased military threats toward Taiwan. Seemingly aware of such criticism, he warned Western countries, saying, "As history repeatedly proves, confrontation is not helpful and leads to disastrous outcomes," and urged, "Cold War thinking must be abandoned."

Facing criticism that he is pushing distribution policies to strengthen party control and secure legitimacy for long-term rule ahead of his third term next year, recent moves by Chinese authorities to intensify regulations on private education and real estate, as well as reorganize economic, ideological, and cultural sectors, are seen as part of this effort.