China Rising

Posted: October 19, 2017 in Uncategorized

The Congress has kicked off and President Xi consolidates the power (the most after Mao!) and present his vision.

-China will grow with the mandate of Party first and its unique form of Chinese socialism

-China will point to be the foremost power by 2050 (in to phase 2020-2035 and then 2035-2050)

-China will point at quality over quantity (he did not hint at GDP targets)

Other points:

Monetary and Fiscal integration, reigning in speculation, more open economy for foreigner and freer Yuan, housing not for speculation.

In essence President Xi privileges the Party over reforms.

One of the best politicians in the world, but still fail to address some Chinese issues which could endanger his vision.

Rising wages, automation (which is positive due to the shrinking workforce cause by the 1 child policy) and specially the soaring debt  (IMF indicates that it will be 300% of GDP by 2022).

But the biggest threat to Xi vision will come from external events such as the President Trump administration, North Korea, a faster economic deceleration due to the debt level.

Anyway, much better than the Western politicians (not a high bar, but still a bar).

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