Wu Xiaoping Controversy: Time for China to Move Away from Market Economy?

A prof at Renmin University told me in the late 1990s that some people argued in the 1970s that China needed to go backwards from socialism to a market economy in order to achieve communism since market->socialism rather than a Maoist leap of feudalism-> socialism was the way Marx said it had to go.

The October 6th Economist carried an article on the Wu Xiaoping 吴小平  controversy that seemed almost an echo of that kind of thinking.

So I looked into Wu Xiaoping.

Wu Xiaoping sounds like an eccentric character with a deep background in finance.  Not the sort of person one would expect to lead the state enterprise counter-revolution.

Wu Xiaoping’s statement was discussed on some Chinese language BBS about three weeks ago.  I found some comments on a BBS outside of China in Canada that cover a gamut of responses to Wu Xiaoping.  Some though it was a trial balloon for coming policy, some thought moving away from the market was already underway, some thought it was nonsense.

https://www.pin-cong.com/p/130890/?i=1  (bbs with server in Canada)

—- “But do you think about it a bit more deeply, isn’t this a political correctness that is in line with the current political trend of the Communist Party?  He is too straightforward, that might cause a panic, and so he is pulled back.

But already the entrepreneurs have expressed their intention to dedicate the company to the Party. They wear funny red uniforms to go to Yan’an pilgrimage. What is the difference?   

The political atmosphere has already been shaped. Today, any official within the Communist Party, the political machine itself, the countless political screws who have experienced the anti-rightist cultural revolution, they will be very careful about their own political future political security. ….”

—“This shows that the CCP is testing the public’s response to the next step of public ownership. At the end of the 1940s, on the eve of the seizure of state power, the CCP advertised freedom and democracy and praised the United States because of its status as an opposition party. Today,  they care nothing about democracy and freedom, they are trying to move to communism to consolidate their dominant position.”

— “What nonsense!”

—-“…[summary] Wu Xiaoping is very clever.  If he had directly criticized Xi Jinping for preparing to move China from a market to a mixed economy, his statement would have been deleted immediately. However, he pretended to be strongly in favor of the supposed Xi policy.  That way his statement was not deleted, made quite a racket, and the propaganda organs and Xi had to reaffirm their commitment to reform, therefore forestalling their move away from reform.”


Hu Ping’s Radio Free Asia commentary of Sept 14, 2018  notes that Wu Xiaoping argument was swiftly contradicted by the PRC state media, adding that the storm that it created shows that many people doubt Xi’s commitment to economic reform due to some measures he has taken to strengthen state-owned enterprises.


So long, and thanks for all the growthA Chinese writer calls for private companies to fade away

The state sector sees its fortunes rise under Xi Jinping

A sense that SOEs are ascendant was captured in an online article that went viral last month. Wu Xiaoping, a former banker, wrote that the private sector had completed its “historic task” in helping state firms to develop, and that it was time for it to start fading away. Mr Wu’s opinion was widely ridiculed online. His post was deleted, perhaps because even censors thought it was over the top. One associate said Mr Wu had only intended it as satire. Whatever the case, his argument touched a nerve. Mr Xi may think that he is taking a middle road, but suspicions of his intentions abound.”

I found an article about Wu Xiaoping online from the Phoenix (Fenghuang) Web network had picked up from a Chinese energy industry publication.

Who is this Wu Xiaoping who Suggests that China Abandon the Private Enterprise Economy?

Source: Green Power Trading
Today’s article is not about energy, but about a topic that frightens energy industry people.
Yesterday, a man named Wu Xiaoping screamed the slogan of a departed angry ghost.  This was the slogan he yelled. It was quickly deleted.

 Wu Xiaoping: The private sector economy has already completed its historic task of assisting the development of the state economy. Now it should gradually disappear.Wu Xiaoping 16 hours ago 19,000 commentsOver the glorious course of the history of China’s reform and opening, the private economy has already completed its great epochal historic responsibility to help the state sector economy make a leap forward. During the next stage, it will not be easy for the private economy to continue to its heedless expansion. A completely new situation, which will require an economy that is more centralized and more unified economy, and one that is much more of a mixed private-state economy. This mixed economy may well account for a larger and larger proportion of the socialist market economy society in its new stage of development.  

We don’t talk about the topic itself, because everyone understands it.Today, we will do some digging to figure our just who is this guy Wu Xiaoping with his wild ideas!In the headline of his article, he introduced himself as a senior financial person who had participated in the creation of China International Capital Corporation Limited (CICC)’s retail business and wealth management department as executive general manager. Now he works on finance and Internet corporate entrepreneurship.He also gave himself several eye-catching roles – financial critic, business observer, celebrity in the online finance industry, Cheung Kong Business School alumni, visiting professor at Zhejiang University, and one of the founders of the investment banking CICC retail business and wealth management business. He was the co-founder of China’s largest Internet fundraising financial company.

According to media reports, Wu Xiaoping loved reading from a young age. When he was 6 years old, he looked at the Napoleonic Code in his father’s study. He didn’t go to the toilet without taking a book. He also has a strong memory. He could draw a world map with more than 200 country names with their capitals. At the time of the college entrance examination, he applied to the Chinese Literature Department of Peking University. He only switched to finance because his parents worried that “Peking University students were too restless.”

Wu Xiaoping

In 1993, 18-year-old Wu Xiaoping was admitted to the Finance Department of the Central University of Finance and Economics as the top scorer on the Nantong College Entrance Examination.

After graduating from college, for the sake of getting a Beijing household registration, Wu Xiaoping spent eight years at a pharmaceutical company, rotating through many departments. During this period, he changed four departments from finance, securities, general manager’s office to pharmaceutical production base.

Wu Xiaoping decided to go to the business school to finish up his education, so in 2004 he went to the Yangtze River Business School MBA where he got himself gold-plated. After leaving the Yangtze River, Wu Xiaoping successfully entered a multinational commercial bank to do derivatives business.

According to media reports, one year later, thanks to the support of the sales team of the China-Guangzhou Beijing sales team, Wu Xiaoping switched to the institutional sales department of CICC, and began working in the financial field.

He went through ups and downs there. After he leaving CICC, he co-founded of Mi Niu. This is a peer-to-peer platform, handing both stock funds and financial management.

In 2016, after the stock market crash, Mi Niu was investigated and sanctioned by the Securities and Futures Commission and was fined 64 million RMB.

He also has another corporate role as Hexun.com COO and is a strategic consultant to some other companies.

He has also been a co-CEO of Quartet Financial (Quarter), but we have not confirmed it.

Last month, Guo Zhenzhou, the financial boss of Kwaike, surrendered himself to the Shanghai Huangpu Public Security Bureau. Guo confessed to the criminal facts of illegally taking public deposits. As of July 31, 2018, the cumulative volume of Kwaike Finance was 15.6 billion RMB, and the balance to be paid was 3.8 billion RMB.

He recently made another posting that grabbed headline attention: “The value of the Bingduoduo online sales company is almost US $24 dollars. In time, the market value of this company will surpass Jingdong? Then why are consumer companies of A-shares unable to obtain valuation upgrades?”

Wu Xiaoping, what do you say?

Wu Xiaoping isn’t the only one writing about China moving away from the market economy.  The Phoenix web network in March 2018 published another article “Kong Dan: The Party’s Ultimate Goal is to Get Rid of Private Ownership So it Had Better Get to be Good at Managing Capital”  孔丹:党的终极目标是消灭私有制,必须善于管控资本 Private enterprise is a far larger proportion (the Economist recently put it at 80%) of the Chinese economy than the state-owned enterprises that once dominated China in the days of Mao Zedong.


2018-09-12 17:24:40
来源: 绿色电力交易























About 高大伟 David Cowhig

Worked 25 years as a US State Department Foreign Service Officer including ten years at US Embassy Beijing and US Consulate General Chengdu and four years as a China Analyst in the Bureau of Intelligence and Research. Before State I translated Japanese and Chinese scientific and technical books and articles into English freelance for six years. Before that I taught English at Tunghai University in Taiwan for three years. And before that I worked two summers on Norwegian farms, milking cows and feeding chickens.
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