Xi Jinping-Li Keqiang, Street Vendor Economic Conflict Rumors

[Image source=Reuters Yonhap News]

[Asia Economy Beijing=Special Correspondent Park Sun-mi] The 'street vendor economy' is emerging as a hot topic within China.

According to Chinese media on the 8th, following Premier Li Keqiang's mention of the 'street vendor economy,' a craze for street vendors has swept through cities. However, in major cities like Beijing, there has been a sudden crackdown on street vendors, and state-run media have highlighted the negative side effects of this craze, creating internal 'discord' surrounding the street vendor economy.

The Beijing Municipal Urban Management Bureau has announced a policy to thoroughly crack down on illegal acts such as street vendors occupying roads without permission and to impose strict penalties. Amid the launch of the 'Beijing Consumption Season' on the 6th to absorb the economic shock caused by the spread of COVID-19, Beijing has declared its intention to rigorously enforce regulations against illegal activities by street vendors.

The Beijing Daily pointed out the necessity of regulating the street vendor economy, stating, "Each city is at a different stage of development and faces different circumstances, so whether the street vendor economy is suitable for a city should be judged and chosen according to the city's situation. We must not blindly follow the street vendor economy. Beijing is the national capital and represents the country’s image, so attention must be paid to maintaining urban order." CCTV also warned in a commentary on the 7th, "The street vendor economy is not a panacea, and blindly pursuing it can lead to results opposite to what is intended."

On the other hand, the Gansu Provincial Department of Commerce issued an 'Urgent Notice on the Development of the Street Vendor Economy and Night Market Economy,' urging to "encourage the street vendor economy and night market economy, promote consumption, and expand domestic demand." It emphasized that developing the street vendor and night market economies is related to people's livelihoods and that new vitality should be injected into the market through reasonable arrangements. Other local governments such as Shandong and Jiangxi provinces have temporarily legalized street vendors, who had previously been subject to strict crackdowns, by designating their operating hours, locations, and business methods. In each city, people who lost their jobs opened street vendor stalls to make a living, and the stock price of Wuling, a Chinese automobile manufacturer producing trucks for street vendors, surged by 120% during the trading day.

Amid the spreading craze for street vendors, the simultaneous moves to crack down on them have led Beijing’s political circles to interpret this as a sign of discord stemming from deepening conflicts between Chinese President Xi Jinping and Premier Li.

The craze for street vendors in China began in earnest after Premier Li explained the strengths of the street vendor economy at a press conference marking the closing of the National People's Congress (NPC) on the 28th of last month and emphasized on the 1st of this month that "the street vendor economy is an important source of jobs and the vitality of the Chinese economy."

However, the Central Propaganda Department of the Chinese Communist Party, concerned about the negative image of China, issued instructions on the 4th to major state media not to use the term 'street vendor economy.' Following this directive, state-run media have focused on reporting the negative side effects of the street vendor economy, putting the brakes on the craze sparked by Premier Li. Hong Kong’s Apple Daily analyzed, "Premier Li has emphasized a 'free economy,' while President Xi has stressed 'party control,' indicating that conflicts between the two have been accumulating. It appears that these conflicts have exploded around the street vendor economy."

This content was produced with the assistance of AI translation services.