Chinese President Xi Jinping makes waves after his speech following the inauguration of the city’s new leader and government in Hong Kong on July 1, 2022, on the 25th anniversary of the city’s handover from UK to China.
Selim Chtayti | AFP | beautiful pictures
Chairperson Xi Jinping It will be necessary to face some of China’s major economic challenges after he secures an unprecedentedly widely-anticipated third term, according to veteran investor David Roche. Roche.
Roche said Xi will most likely “pass” on the confirmation as China’s highest-ranking party chief at the upcoming National Congress meeting, setting the stage for him to secure another five-year term as China’s leader. how to be the leader of the country.
He added at the party meeting of the National Assembly to be held later this year.
Roche, president and global strategist at Independent Strategy, told CNBC: “He faces a lot of challenges.Squawk Box Asia” on Thursday.
China’s economy is slowing with a growth rate likely to stabilize around 3% to 4%, he added. “partly conditioned by legacy problems of bad debt and assets and partly conditioned by very poor demographics and productivity. “
China’s growth weakens
Goldman Sachs has also cut its forecast for the MSCI China index due to an increasingly severe drop in China’s real estate market. The investment bank has reduced its earnings outlook for the index to zero growth for the year, down from 4% previously.
Roche said China’s economy was struggling with “huge real estate problems and banking problems.”
If [Xi Jinping] As he nears the end of his term, he must make real progress on … social peace. And I think that’s a big, big challenge.
David Roche
Independent strategy
“You’ve seen it in people trying to get their deposits back. You see it in people who refuse to pay their mortgages, which is affecting the very concept of commonwealth, which is [Xi’s] main ticket,” he added.
Xi initiated the concept of “common prosperity“last year, it’s generally understood as moderate wealth for all, rather than just a few. But it’s still a vague, frequently used tagline.
Xi’s vision for the next term
On Wednesday, China’s state broadcaster CCTV reported on Xi made the comment during a special two-day meeting in Beijing in which he laid out his vision for the “next five years.”
Xi said the Chinese Communist Party congress would issue a “two-stage strategic plan for China’s efforts to build a modern socialist country that is great in all respects, and in particular will put forward plans for strategic tasks and major measures for the next many years.”
“Xi called for efforts to focus on addressing unbalanced and inadequate development, and work on new ideas and measures to solve problems,” the broadcaster said.
“Xi will be confirmed for sure, but if he’s going to finish his term, he has to make real progress on … social peace. And I think that’s a challenge,” Roche said. big, big consciousness.”
