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In case you haven’t seen it, there’s a blockbuster news article on the front page of the WSJ written by Lingling Wei, a veteran Chinese reporter.

“Xi Jinping aims to rein in Chinese capitalism, moving beyond Mao’s socialist vision.”

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In other words, Xi Mao is leaving.

The pioneering market reforms undertaken by Deng Xiaoping 40 years ago, which modernized China’s economy and made them an economic competitor (actually an economic adversary with the US), would be reversed.

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Many of us have noticed this tendency for years to look to China as Xi cracked down on business and the stock market and successful, wealthy entrepreneurs in China and, of course, he rolled out free market democracy in Hong Kong. and that the next target is Taiwan, but this article is the clearest reporting of Xi’s intentions.

We’ll cover it this evening and in the coming days because it’s a major, major story. Xi has been campaigning against private enterprise, driving China’s development toward free-market capitalism, in fact cutting back on market forces in China, including attacks on private capital, on the economy by at least 100% Including setting up regulatory actions, and troubling after Alibaba. Public offering by Tencent, Didi, Jack Ma’s Ant Group and other stock market issues. Xi described the Internet technology sector as huge and powerful.

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All this has taken $1 trillion from Chinese market values.

Xi wants greater equality, greater distribution of wealth, a government-run economy. Essentially, Xi has issued a declaration of war on behalf of his working class followers against capitalism.

It wants some sort of pure socialism as its goal and this Chinese socialism will be placed under the sole control of the Chinese Communist Party.

Perhaps, securing the deal during the celebration of the Chinese Communist centenary last July, Xi wore a Mao suit. Having said all this, somewhat tongue-and-cheek, but not completely, I can’t stop myself from asking, really: What are the big differences between Xi’s economic policy and Joe Biden’s economic policy?

XI Jinping aims to rein in Chinese capitalism, beyond Mao’s socialist vision

After all, Biden is campaigning against private enterprise. He does not believe in market forces. He is trying to control every nook and corner of the economy.

He constantly talks about the need for greater equality. He favors redistribution of income and wealth. sound similar?

There are only two major differences between the policies of Biden and Xi.

First, Xi hasn’t raised taxes and if Biden gets his way, the US will have much higher trade and investment taxes than China.

Second, Biden doesn’t have a Mao suit – at least not yet.

Biden doesn’t explicitly talk about socialism, but I side with Newt Gingrich in describing Biden’s policies as big government socialism versus free enterprise capitalism.

Seriously guys, the economic similarities of the two presidents should give everyone some food for thought.

Now, America is a democracy and a free country. China is definitely not.

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I don’t know what Xi Jinping’s return to Maoist socialism means for the US-China Phase 1 free trade deal.

I will note that Chinese negotiator Liu He, a genuine market reformer, is on his way to retirement. Deputy Prime Minister Liu—He became my friend during our business talks.

When Xi pulled out DiDi’s $4.4 billion New York IPO in late June, Liu was criticized for not making the first move and was then forced to call the Chinese “self-criticism”, which is traditionally the case for the Communist Party. used to discipline the members. .

Self-criticism is a practice that Mao borrowed from Stalin and is back in fashion in Mr. Xi’s China.

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So, this may be the biggest difference between Biden and Xi. Self-criticism is not Biden’s strong suit.

Biden never mentioned China in his UN speech today. I don’t know if he read or even knew the “Xi Bans Mao” front-page WSJ story, nor do I believe his top aides would even tell him about it, but one thing is certain – China has ceased to exist. Moving away is a competitive adversary to a direct enemy.

The state-run economy under totalitarian politics is a wicked witch’s brew and this is my crack.

This article is adapted from Greg Gutfeld’s opening remarks on the September 21, 2021 edition of “Kudlow.”