Xi Jinping’s New Era for the Economy

This chapter analyzes the trajectory of Xi Jinping’s economic policies, underscoring both ideological continuity with past leadership and Xi’s unique approach to state-led governance. Initially perceived as a potential reformer, Xi has instead championed a state-centered economic model that prioritizes the dominance of state-owned enterprises (SOEs) and the Communist Party’s central role in economic management. Key themes include Xi’s ideological roots, his early reform agenda, and the strategic pivot toward reinforcing state authority as a response to economic volatility and escalating U.S.-China tensions. The chapter argues that Xi’s shift from market liberalization toward state consolidation reflects a calculated response to financial instabilities, prioritizing national security and stability over market freedoms. Through case studies, it illustrates how individual corporations, especially SOEs, are strategically employed to advance Party objectives, ensuring economic stability and a strategic edge. The chapter positions Xi’s economic policies as a nuanced blend of inherited ideologies and strategic adaptations, emphasizing state control as an imperative amid mounting external pressures, particularly from the United States.