In his new year’s speech, President Xi Jinping told the Chinese people that their nation was in the process of implementing something unprecedented. There would be challenges, he warned, but if China remained united the ultimate goal of creating ‘socialism with Chinese characteristics’ could be achieved.
It’s easy to dismiss this kind of rhetoric. After all, China’s economic reforms seem to be moving away from socialism towards capitalism at a rate never before seen. However, it’s important to understand what the country’s leaders mean when they talk about ‘socialism with Chinese characteristics’. Moreover, it helps understand the Communist Party’s response to the recent stock market crash.