The Chinese Communist Party (CCP) has urged local governments to curb spending amid the current financial strain. Experts believe this political strategy will not help solve China’s economic difficulties but only accelerate the economic decline and that the CCP’s main concern is to maintain its ruling authority, and it has neglected its role in fostering economic development.
Tightening Belt Political Play
Premier Li Qiang’s statement in his Government Work Report in March, urging “all levels of government to get used to tightening their belts,” set the stage for the Chinese Ministry of Finance to issue directives mandating fiscal austerity measures at both central and local levels.
Mary Hong
Author
Mary Hong is a former Epoch Times reporter based in Taiwan. She covered China news, U.S.–China relations, and human rights issues.
