China Supply and Marketing Cooperatives came back out of the rivers and lakes.
(picture taken from Weibo)
[Financial Channel/Comprehensive Report] Under the leadership of Xi Jinping, China’s supply and marketing cooperatives are making a comeback, and their sales are approaching the e-commerce leader Alibaba Group.
In 2021, the income of supply and marketing cooperatives will increase by 19% annually, and their performance will reach 6.26 trillion yuan, which is about 80% of the transaction scale of Alibaba platform.
Regarding the proliferation of supply and marketing cooperatives, a professor at a university in Beijing bluntly said that if China invades Taiwan by force, it may face international sanctions, cause food shortages, and damage the Communist Party's control of power. Supply and marketing cooperatives can prevent food distribution from being interrupted.
Nikkei Asia reported that the China Supply and Marketing Cooperative was established in 1950 as a way for the CCP to improve access to basic supplies.
During the planned economy period, supply and marketing cooperatives were the main distribution channel for food and daily necessities in China.
After China's reform and opening up, supply and marketing cooperatives lost support.
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However, since Xi Jinping became the leader of the Communist Party of China in 2012, supply and marketing cooperatives have reemerged.
From 2012 to 2021, the income of supply and marketing cooperatives has increased by 2.4 times, which is related to the fact that China's epidemic blockade has fueled the flames.
The data shows that in 2021, the income of supply and marketing cooperatives will increase by 19% annually, exceeding the 12% growth rate of China's overall retail market, and the annual performance will reach 6.26 trillion yuan, which is about 80% of the transaction scale of Alibaba platform.
This year, Xi Jinping continued to promote this policy, local officials actively made performances, and supply and marketing cooperatives blossomed all over China.
In October, a new supply and marketing cooperative opened in central Beijing, packed with middle-aged and elderly shoppers.
Entrance posters also bear the political slogan "Follow the party, walk with the party" instead of displaying daily transactions.
Regarding the comeback of the supply and marketing cooperatives, a professor at a university in Beijing bluntly stated that if a crisis occurs in the future, the government must prevent the interruption of food distribution.
For example, if China tries to invade Taiwan by force, the United States and the international community may impose economic sanctions on China, which will lead to food insecurity and damage the Communist Party's control of power.
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