Are China’s current economic policies a repeat of what the Soviet Union attempted to do all those years ago, culminating in its collapse and dismemberment in 1991? Vision Times, a Falun Gong-affiliated newspaper, in an article titled “Communist Party Newspaper Devotes Full Page to Declaring Poverty; History Repeats Itself After Decades,” claims that this is precisely the case.
Falun Gong is a spiritual group founded in China that was later banned by the Communist Party in 1999. Its leader Li Hongzhi now lives in the United States.
The Vision Times article notes the shift towards Stalinist policies in the former Soviet Union during the Brezhnev era. It says this parallels recent leftward political shifts in China under Xi Jinping, which have raised concerns about a possible resurgence of Cultural Revolution-like policies.
These changes often lead to tighter political control and increased ideological campaigning, affecting economic stability and growth.
The Soviet Union faced significant economic problems, including widespread shortages of basic goods, due in large part to its focus on heavy industry, military spending and austerity. The article suggests that China is experiencing similar problems today, with the People’s Daily newspaper, the mouthpiece of the Communist Party, promoting austerity measures as a solution to economic difficulties.
Vision Times cited two articles from the People’s Daily: one titled “Governments at all levels must get used to living a tight life” and the other “Implementing multiple measures to tighten budgets.” Both articles reflected China’s broader economic challenges, including a slowing economy, rising debt levels and the need for fiscal discipline.
The first article discusses the Chinese government’s efforts to manage its finances more effectively. It says that in response to difficult financial conditions, the government is focusing on prudent spending. All government departments are urged to cut expenses and save money. This initiative is part of a long-term plan to ensure financial stability and economic growth.
The second article outlines specific strategies to enforce financial discipline, including improving budgetary oversight, controlling routine expenditures such as the use of official vehicles and meeting expenses, and improving the efficiency of public procurement processes.
By implementing these measures, the government hoped to prevent waste and ensure that public funds were used effectively, which is in line with broader fiscal reforms aimed at promoting high-quality economic development and better serving the needs of the population.
Vision Times argues that when state media starts promoting austerity, it is a sign that the economic situation is not good and is likely to deteriorate. It remains to be seen whether the push for austerity becomes a national campaign.
