Communist China's Economic Woes Exposed as Party Elites Huddle in Beijing

Xi Jinping | GOVERNMENT OF RUSSIA

As China's ruling Communist Party gathers for a crucial four-day meeting in Beijing, the cracks in the foundation of the world's second-largest economy are becoming increasingly apparent.

The so-called "third plenum" comes at a time when China is grappling with a host of economic challenges that threaten to undermine its global ambitions and domestic stability.

The timing of this meeting is telling. Originally slated for last fall, the delay speaks volumes about the internal turmoil plaguing the Chinese Communist Party (CCP). With recent high-profile purges of military officials and ministers, it's clear that all is not well within Xi Jinping's inner circle.

China's economic growth has slowed to a crawl, with the latest figures showing a mere 4.7% expansion in the second quarter of 2024. This disappointing performance falls short of analysts' expectations and highlights the fundamental weaknesses in China's state-controlled economic model.

The property sector, long a pillar of China's economic growth, is in crisis. Developers are defaulting on debts, leaving countless Chinese homeowners in the lurch. Local governments are drowning in debt, unable to fund basic services. Consumer confidence is plummeting as the Chinese people lose faith in their government's ability to manage the economy.

Meanwhile, Xi Jinping continues to prioritize state control and "national security" over economic liberalization. His push for technological self-reliance is a thinly veiled attempt to circumvent Western sanctions and export controls, which were put in place to protect our national interests and values.

The CCP's focus on "Chinese-style modernization" is nothing more than propaganda aimed at masking the failures of their authoritarian system. As China struggles, it becomes increasingly clear that free market capitalism and democratic governance are superior to the CCP's heavy-handed approach.

This meeting in Beijing is unlikely to produce the kind of bold reforms needed to address China's structural economic issues. Instead, we can expect more empty rhetoric about "deepening reform" while the party elites cling desperately to power.

As China falters, it's crucial that the United States and our allies remain vigilant. We must continue to protect our technological advantages, counter Chinese economic aggression, and stand firm in defense of our values and interests on the world stage.

The challenges facing China serve as a stark reminder of the superiority of our free market system and democratic institutions. As we watch the CCP struggle to maintain its grip on power, we should redouble our commitment to the principles that have made America the world's leading economic and political power.