Oh, I don't know about that, the author does a good job of outlining it: Xi's in danger of overdoing it. The Chinese have gotten a taste of capitalism and China wouldn't want to end up like every other communist regime before it trying to reign in control of people's wealth to exert power.
I think that's Xi's biggest concern, but let's make no mistake, those who are looking to destabilize China's CCP aren't looking to replace the system with a western democracy. Its hierarchical culture precludes such system. Tiny Taiwan remained a dictatorship until recently and, judging from their frequent parliamentarian brawls, still struggles with respectful disagreements. Imagine China and its 1.2 billion population evolving to a Taiwan level? Good luck. My concern is that Xi is trying to rekindle with socialist fervor and decouple from the West in preparation to a war to retake Taiwan. Xi is intent on making his mark in Chinese history and Taiwan is the biggest prize. Either the Chinese leadership decides that Chinese capitalism with communist graft is a better way and finds a way to yank Xi from power, or they buy the Xi narrative and engulf China and the region in chaos.
Xi doesn't read to me to be that dumb (though that may be "dear leader" propaganda). Taiwan's not HK (to which they legally had binding rights to), and doubt they're serious about it. To me it just seems like posturing against the west.
I think it goes further than that, their claims on South China Sea means there's more to it. Chinese present a smiling face while scheming in the background.
I agree. This is basically Xi or his cronies' attempt to "wean" Chinese people off the West to prepare to establish a China-only closed economy since it feels that the West is now against China and at the same time weaken individual wealth and potential power before it becomes a threat. China is all about "prevenging" instead of "avenging" (Iron Man would've loved that). And at the time it wouldn't hurt to expropriate some of that wealth from individual companies to fill in the holes in those badly-run state-run companies. Is it any coincidence that this is happening at the same time that the largest bad-debt management company single-handedly started by the Chinese Ministry of Finance and China Life (another state-run company) is incurring a $15.9 billion loss? Where is the country coming up with the money for the bailout if it doesn't want to print money? Remember it is still going ahead with its ambitious one-belt-one-road geopolitical project. See now you know why central banks in the western world print money? Otherwise it would have to start a Cultural Revolution to go after the likes of Warren Buffett, Bill Gates, and etc. for money.
What Adam Smith's invisible hand? It's blind until it loses a few fingers. The biggest money attraction is returns. Just google Tianjin 117 and there are plenty of stalled projects on Youtube. Especially those fake "old city". This where central planning is necessary and the lack of it causing much misery particularly those displaced peasants.
Central planning is what causes gross misallocations in capital. Russia made staggering blunders with its 5 year plans, too. In a capitalistic society, it is runaway credit growth with improper underwriting that causes misallocation. The bulk of China's provincial funding comes from "releasing" land to developers who in turn sell to investors who have no broad alternatives to preserve and grow wealth. Remember, they are always dealing with +5% inflation unlike Americans who are relatively sheltered from inflation. With the stock market demolished, the Chinese will want to invest into even more property. My brother, who married a local, is looking to buy Chinese property and it goes for 33 times annual rent. Another country's market that I have access to is going for 23 times at 16% vacancy rates. Dallas, Texas goes for 13 times. And some say that the US is in an RE bubble? The CCP's hasty moves shows they are loosing control. At least they have the propaganda pre-staged before the real upheaval comes. So what is the trade here, gentlemen?
If you google Wukan protest, local corrupt official stolen land from peasant and sold it to developer. Don't think Beijing would allow that to happen. I would think it is the lack of scrutiny that emboldened the local officials to corrupt.
Yeah like under central planning, there weren't displaced peasants. LOL I would love it if China goes back to central planning. It would be guaranteed that China won't be won't be the next superpower for like at least until the next century.
It's the lack of scrutiny? LOL It's the "connections" with the right people. Beijing won't allow it to happen? When it's exposed and when they lose face, then no, of course not, Beijing won't allow it. But other than that, as long as it brings in the yuan, anything goes.