Saudi Press

Saudi Arabia and the world
Tuesday, Apr 07, 2026

Changing China: Xi Jinping's effort to return to socialism

Changing China: Xi Jinping's effort to return to socialism

For decades life in China had evolved around its home-grown version of let-it-rip capitalism.

Despite being technically a "communist" country, the government had put its faith in trickle-down economics, believing that allowing some people to become extremely rich would benefit all of society by dragging it out of the disastrous quagmire of Chairman Mao's Cultural Revolution as quickly as possible.

To an extent it worked. A large middle class has emerged and people in virtually all strata of society now have better living standards as a result.

Wealth disparity


From the stagnation of the 1970s China has been thrust to the top of the pile, now challenging the United States for global economic dominance.

But it left a chasm of income disparity.

It is there to be seen in the children of those who were in the right place and the right time.

Parents who were able to take over factories in the 1980s made exorbitant profits which have paid for their progeny to now drive flashy sports cars around gleaming cities, zooming past the construction workers who wonder how they will ever be able to afford to buy a home.

The get-out-of jail card for the Party had always been the phrase "with Chinese characteristics".

The concept of socialism - "with Chinese characteristics" - allowed the government massive philosophical leeway to run a society which, in many ways, was not very socialist at all.

General Secretary Xi Jinping appears to have decided that this is no longer acceptable.

The Chinese government, under his leadership, has started putting the Communist back in the Communist Party, at least to some extent.

Despite the communist system, there is a huge gap between China's richest and poorest people

The new catchphrase is "common prosperity".

It hasn't really appeared yet on the street side propaganda posters but this can't be far off.

It is now the cornerstone of what China's leader is doing.

Crackdowns on daily life


Under this banner, targeting tax evasion by the wealthy makes more sense, as do moves to make education more equitable by banning private tutoring companies. The ongoing crackdown on the country's tech giants can also be seen as part of the plan.

So does Xi Jinping really believe in this idea of a communist project? It is hard to be 100% sure but some observers would say it certainly seems that way.

China is this year celebrating the 100th anniversary of the Communist Party

As a comparison, in the past it didn't feel like that with many other Party officials.

The thing is that - along with the wealth redistribution aspects of the communist path - Mr Xi also seems to believe that this means thrusting the Party back into most aspects of daily life, as the only realistic way of achieving what needs to be done.

Kids are being lazy, wasting away their youth playing video games? Party to the rescue: three-hour gaming limit.

Teenagers having their minds poisoned with silly, idol-worshipping television? Party to the rescue: "sissy looking" boys banned from programmes.

Demographic time bomb ticking: Again, the Party has the solution: Three-child policy for all!

Football, cinema, music, philosophy, babies, language, science… the Party has the answers.

At odds with his father's beliefs


To try to understand what has made Xi Jinping the leader he is today you have to take a look at his background.

His father, Xi Zhongxun, was a Communist Party war hero, known as a moderate, who was later purged and imprisoned in the Mao era.

At the time Mr Xi's mother was forced to denounce his father. After his father's official rehabilitation in 1978, he pushed for economic liberalisation in Guangdong Province and reportedly defended one of China's most progressive leaders Hu Yaobang.

Given the persecution of Mr Xi's father at the hands of Communist Party zealots, given his father's inclination towards reform, many have asked why Xi Jinping now seems to be taking the Party in a direction which would appear to be at odds with his father's beliefs?

There are various possible explanations.

Perhaps he simply disagrees with his father's line on certain political matters.

Or maybe China's leader intends to pursue a plan which, while different in emphasis to the priorities of his father, will not end up anywhere near the policies of the Mao era. At least not intentionally.

However, it does still seem quite remarkable.

Xi Jinping appears on a large screen during an event marking the 100th anniversary of the Communist Party

When his father was sent to prison, Xi Jinping, at the age of 15, was made to go to work in the fields for years, living in a cave house.

These tumultuous times clearly toughened him up but could just have easily transformed into a hatred of politics, especially of a hard-line variety.

Some China watchers have speculated that he perhaps believes that only a strong leader can guarantee that China will not return to the chaos of the 1960s and 70s.

And remember the rules have now been changed so that he can remain in power for as long as he likes.

One reason for all this guess work is that we never hear him explain what he is doing in terms of his decisions. China's leaders do not give interviews even with the compliant Party-controlled media.

Mr Xi turns up in rural villages for television opportunities and is welcomed by orchestrated crowds of cheering locals who receive his wisdom on corn growing or other aspects of their work and then he leaves.

So it is hard to predict what new rules, restrictions or guidelines might be placed on economic activity in China or how far any of this will go.

In recent times, barely a week has gone by without a major change to the regulations governing one part of the Chinese system or another.

It has been, frankly, difficult to keep up with them. Many of these changes have come completely out of the blue.

It is not that there is an innate problem with the state controlling various levers of production here. That is for economists to debate in terms of what is most efficient. The problem has been the sudden uncertainty.

How can anybody reliably make investment decisions if they don't know what the ground rules will be in a month's time?

There are those here who see the whole process as a natural part of the country "growing up". In areas which had been unregulated there have needed to be regulations.

If this is the case, then this period of shock tactic transition may be only a temporary state which will eventually calm down as new rules become clear.

But it is by no means clear what the length or breadth of these moves will be.

One thing that is certain is that any shift should be seen through the prism of Xi's "common prosperity" drive at a time when the Party will not give up an inch of its power while implementing it and, in China, you can either get on board this truck or get run over by it.


Why does China’s economy matter to you?


Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Taiwan to Source Oil Shipments from Saudi Arabia’s Red Sea Ports
Saudi Arabia Evacuates Riyadh Financial District as Precaution Amid Regional Tensions
Saudi Arabia Balances Ambitious Economic Vision Amid Regional Tensions and Financial Pressures
Budget Saudi Arabia Reports Strong Full-Year 2025 Financial Performance
Saudi Arabia Expands Investment in Capcom With Stake Reaching Six Percent
Saudi Arabia Assesses Significant Economic Impact From Regional Conflict Involving Iran
US Beef Secures Expanded Market Access in Saudi Arabia
Jordan and Saudi Arabia Declare Absolute Solidarity in Response to Iranian Threats
Saudi Arabia Raises Oil Prices to Record Premium Amid Strong Market Demand
California’s Salton Sea Emerges as Strategic Lithium Hub for Clean Energy Future
Iranian Drone Strike on US Embassy in Saudi Arabia Reportedly Targeted Intelligence Facility
Saudi Deputy Foreign Minister Meets French Embassy Official to Strengthen Bilateral Engagement
Saudi Arabia Calls on United States to Seize Strategic Opportunity to Reshape Middle East
Dating Apps Surge in Saudi Arabia as Social Norms Rapidly Evolve Among Youth
Saudi Arabia Detains Over Fourteen Thousand Illegal Residents in Week-Long Enforcement Drive
Saudi Foreign Minister Engages in Diplomatic Talks with Pakistan, Kuwait and Latvia on Regional Developments
Saudi Arabia Intercepts Cruise Missile as Regional Tensions Intensify
Saudi Stock Market Edges Higher as Tadawul Index Records Modest Gain
Underlying Rivalry Between Saudi Arabia and UAE Persists Despite Temporary Calm
Saudi Arabia’s Non-Oil Sector Contracts in March as Regional Tensions Weigh on Business Activity
Saudi Arabia Unveils Ambition to Establish Prestigious Global Prize Rivaling the Nobel
Saudi Crown Prince to Engage Wall Street in Push for Investment and Economic Expansion
Iran Accuses Saudi Arabia and UAE After Downing of Chinese-Made Drone
Saudi Arabia Condemns Attack on Hospital in Sudan, Calls for Protection of Civilians
Coordinated Drone Strike Targets CIA Facility Within US Embassy in Saudi Arabia
Italy’s Meloni Prioritises Energy Security and Strait of Hormuz Stability During Gulf Tour
Uncertainty Emerges Over Timeline and Direction of Saudi Arabia’s Ambitious Ski Resort Project
UAE and Saudi Arabia Escalate Strategy with Drone Operations Targeting Iran
Trump Delivers Characteristic Remarks on Saudi Crown Prince Amid Intensifying Iran Conflict
Drone Strike on US Embassy in Riyadh Caused Greater Damage Than First Reported
Saudi Arabia Introduces Flexible Solutions for Expired Visas Amid Regional Disruptions
Saudi Arabia’s Online Car Market Accelerates with AI Pricing and Fully Digital Buying Experience
Saudi Arabia Reassesses Defence Strategy as Iranian Drone Threat Drives Shift in Military Partnerships
Drone Strikes Target Saudi Arabia, Kuwait and Bahrain as Regional Conflict Intensifies
Japan and Saudi Arabia Align Efforts to Ease Rising Tensions with Iran
Saudi Crown Prince and Italy’s Meloni Strengthen Strategic Ties in High-Level Talks
SpaceX Explores Potential Five Billion Dollar Investment from Saudi Sovereign Wealth Fund Ahead of IPO
Saudi Arabia Lifts Key Import Barriers to Expand Access for U.S. Beef Exports
Saudi Arabia Enforces Strict Travel Penalties for Visits to Restricted Countries
Italy’s Meloni Embarks on Strategic Gulf Tour to Address Energy Security and Regional Stability
Saudi Film Festival Rescheduled to Summer as Regional Tensions Continue
Saudi Arabia Reports Forty Two Point Six Billion Dollars in Foreign Tourist Spending in 2025
Saudi Crown Prince and Russian President Hold Strategic Call on Escalating Regional Crisis
Saudi Arabia Advances Rail Network as Strategic Alternative to Strait of Hormuz Shipping Route
Ruanyun Edai Launches Saudi Arabia Hub With Forecast of Ten Percent Revenue Growth
Greek Defence Minister Visits Troops in Saudi Arabia Following Successful Missile Interception
Saudi Arabia Expands Global Strategy With Focus on African Critical Minerals
SpaceX Explores Potential Five Billion Dollar Investment From Saudi Fund Ahead of Possible IPO
US Central Command Dismisses Iranian Claim of Mass Casualties Among American Personnel in Saudi Arabia
Co-Diagnostics to Establish Molecular Diagnostics Facility in Saudi Arabia Through Joint Venture
×