Businesses leave China, disappointed with lack of reforms under Xi Jinping

According to a survey, businessmen are worried about the future of the Chinese economy. Only a third of the population of rich Chinese say they are very optimistic

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Beijing/New Delhi: Chan Tianyoung, who worked as a real estate developer in China’s Shanghai, boarded the flight last month and moved to Malta. He has no plans to return in the near future. After landing, a former judge and lawyer Chan wrote an article on social media and explained in detail why he left China.

According to The New York Times report, “China’s economy is like a giant ship heading to the precipice,” Mr Chen wrote. “Without fundamental changes, it’s inevitable that the ship will be wrecked and the passengers will die.”

“My friends,” he urged, “if you can leave, please make arrangements as early as possible.”
It is not clear how many people saw the post before China’s censored internet pulled it down, but Chan Tianyong has publicly said what many businessmen say privately in China.

China’s leadership misled the world’s second-largest economy and China’s entrepreneurs are losing faith in the future of the country.

China’s economy is slowing down and trade war with America has hampered growth, but the entrepreneurs are mainly concerned that China will not implement the necessary economic and political reforms. On the contrary, after Xi Jinping’s winning control of the Communist Party in 2012, the party has increased its dominance in every aspect of Chinese society.

According to a recent survey, only a third of China’s rich say that they are optimistic about China’s economic scenario. Two years ago, nearly two-thirds of the people had said that they had a lot of faith in it.

The number of people who lost faith completely has doubled compared to 2018 and now almost 14% are in this category. About half of the people said that they were thinking of moving to another country.

Fred Hu, founder of the investment firm Primavera Capital Group, says, “China is facing many internal and external challenges. We need to realise that in the last 40 years our success has been due to economic reforms and not from a particular China development model.

The New York Times report states that the statement of Hu is diplomatic. In a private conversation, a businessman speaks with more anger and fear. They plead for privacy because it is dangerous to talk about economic issues in the prevailing environment of China. Many businessmen blame poor policies and leadership for this situation.

China’s economic growth rate was 6.6% in 2018, which is the lowest level in the last 28 years. The International Monetary Fund has said that the growth rate of China’s economy in 2019 and 2020 is estimated to be 6.2%.