This may be a dangerous situation for the Chinese. I worry that the Chinese people, and the nation as a whole, could be thrown off course. It seems the national center, with Wall Street cheering it on (and perhaps even assisting somehow?), is attempting to radically change their system, including their banking and finance sectors, for example, the 3rd Plennum results want to eliminate their partial capital market fragmentations just we did in the latter 1970s. The changes they are pursuing, and the arguments supporting them, are just like the ones the USA did between the mid 1970s and mid 1980s. Those changes failed, even with the support of an extractive global empire that allowed for perpetual large government deficits, trade deficits, and high liquidity without inflation, which are conditions China won’t have. In the case of the USA, even in their own oversimplified terms (like real GDP growth rates), these justifications failed within a short time after the changes were implemented. Perhaps it will turn out differently in China, if these reforms do happen. I hope so, for the sake of the Chinese people.
even as these firms inject capital into a Chinese economy otherwise starved of foreign direct investment??
With $5 trillion in foreign reserves and a commanding lead in every branch of science, the last thing China needs is FDI. The PBOC invited major hedge funds to bid for pieces of its $1.6 trillion SWF, and that's their primary focus/
The CCP owns the DNC. Baizuo Tim Walz has deep, dark connections with China and has visited 30 times. ESG helps the CCP by deindustrialzing America and the West: https://yuribezmenov.substack.com/p/tim-walz-baizuo-court-eunuch-useful-idiot
This may be a dangerous situation for the Chinese. I worry that the Chinese people, and the nation as a whole, could be thrown off course. It seems the national center, with Wall Street cheering it on (and perhaps even assisting somehow?), is attempting to radically change their system, including their banking and finance sectors, for example, the 3rd Plennum results want to eliminate their partial capital market fragmentations just we did in the latter 1970s. The changes they are pursuing, and the arguments supporting them, are just like the ones the USA did between the mid 1970s and mid 1980s. Those changes failed, even with the support of an extractive global empire that allowed for perpetual large government deficits, trade deficits, and high liquidity without inflation, which are conditions China won’t have. In the case of the USA, even in their own oversimplified terms (like real GDP growth rates), these justifications failed within a short time after the changes were implemented. Perhaps it will turn out differently in China, if these reforms do happen. I hope so, for the sake of the Chinese people.
even as these firms inject capital into a Chinese economy otherwise starved of foreign direct investment??
With $5 trillion in foreign reserves and a commanding lead in every branch of science, the last thing China needs is FDI. The PBOC invited major hedge funds to bid for pieces of its $1.6 trillion SWF, and that's their primary focus/
Capitalism can be both a strength and an Achilles Heel.