Several high-level officials were absent from one of the most important annual meetings of the Chinese Communist Party (CCP). China experts believe the absence of these officials may be due to COVID-19.
The Central Economic Work Conference of the CCP Central Committee was held in Beijing from Dec. 15 to 16. The conference reviewed China’s current economic situation and set the country’s macroeconomic policies for the following year.
The news footage from China’s state-run CCTV showed that a number of senior officials were absent.
The Hong Kong media noted their absence. In an article published by Ming Pao on Dec. 20, this year’s economic meeting was not postponed as expected, but the session was shortened to two days from three.
The article noted the absence of Natural Resources Minister Wang Guanghua, Central Bank Governor Yi Gang, Banking Supervision Chairman Guo Shuqing, China Securities Regulatory Commission Chairman Yi Huimann, Auditor General Hou Kai, General Administration of Market Supervision Director Luo Wen, and State Council Development Research Center Director Lu Hao.
COVID Infections
Li Yuanhua, a former associate professor at Beijing Normal University, said in an interview with The Epoch Times on Dec. 21 that the main reason for the absence of senior CCP officials in Beijing is the recent surge in infections.“It should be said that more than half of the people in Beijing are infected with COVID-19,” Li said. “So officials in Beijing are not immune, including their families, and many of them cannot attend the conference because of the pandemic.”
Current affairs commentator Chen Pokong said in his YouTube program on Dec. 21 that there are two possibilities for the absence of the senior officials: one is that they are infected with COVID; the other is that some of them might be facing political challenges amid infighting within the CCP.
Chen said: “Due to the CCP convening the National People’s Congress and the Chinese People’s Political Consultative Conference next year, it is a change of government system. I am afraid that some officials will be involved in the change. In this case, political reasons cannot be ruled out.”
Li believes the CCP’s internal struggle will not be shown to the international community. He said, “Due to the CCP wanting to create a superficial and harmonious scene, they will always allow the officials to go to major conferences even when they’re at risk of being arrested.”
Zhang Tianliang, a China expert and U.S.-based commentator on current affairs, said on his YouTube video on Dec. 21 that these senior officials are likely infected with COVID.
Zhang said that whenever there is such an abnormal situation in the CCP, people will suspect that something is wrong with the Central Committee, especially the top leaders. However, he sees no sign of Xi’s power wavering at this time. He believes that those senior officials who did not attend the meeting are infected with COVID.
“That would explain why so many senior officials were absent simultaneously. [CCP leader] Xi Jinping faces a lot of criticism, but I don’t think it’s enough to compromise his position. I don’t think Xi’s political power is being challenged by the absence of so many senior officials from the Central Economic Work Conference. The key issue is that Xi has made significant adjustments to many economic policies, which is really a surprise to many people,” he said.
Furthermore, Zhang said the CCP has recently abandoned many of its past economic policies, and senior officials are now talking about reform and opening up in public, saying they want to develop private enterprises, which is a big change from Xi’s emphasis on wealth redistribution.
The U.S. Public Company Accounting Oversight Board (PCAOB) said on Dec. 15 that for the first time in its history, Beijing allowed it to conduct a comprehensive inspection of Chinese audit firms. Zhang explained that every time the CCP makes such a big reversal, it does so without warning, and those adjustments to economic policy happen overnight.
World Bank Lowers China’s Growth Forecast
In a report released on Dec. 20, the World Bank lowered its economic growth forecast for China this year and 2023. The World Bank’s latest forecast for China’s economic growth in 2022 is 2.7 percent; next year’s growth is expected to be lowered to 4.3 percent. The report said the drag on China’s economy was the zero-COVID policy and the sluggish real estate sector.China’s economic activity continues to stumble with the pandemic’s ups and downs, according to the report. The slowdown is followed by an uneven recovery. The CCP set an annual growth target of 5.5 percent for China at the beginning of 2022. However, due to the draconian COVID measures and worsening economic situation, the CCP admits that achieving this target will be very difficult.
The report also states that China’s economic growth prospects are constrained by the uncertainty of the current COVID outbreak, policy changes in response to the pandemic, and changes in the the behavior of consumers and businesses, resulting in significant risks.
