Sunday, December 26, 2021

Is PRC in Deep Doo-Doo?

This is an interesting article.

China is currently in a state of stagflation where prices are going up for everything and unemployment is rising, which is a harbinger of little economic growth in the foreseeable future.

Xi Jinping’s crackdown on almost everything in China may be a sign of insecurity or tremendous fear of the monied business sector. Tencent and Alibaba were in the 10 topmost valuable tech companies globally in 2020 and today they are no longer on the list. 38% of the apps disappeared from the app market since 2018. China is about to ban offshore trading services, has not only cracked down on big tech but also social media, tuitions, and games. The crackdown was rationalized in the name of common prosperity, but it is more like a vendetta against businesses --which is causing foreign investors to flee China, making Chinese markets lose 1.5 trillion dollars....

Later in the same essay, the author tells us that Panasonic, Foxconn, and Toshiba have left Red China and that consumer demand is shrinking, leading to layoffs.

That's not an unalloyed good, of course.  Historically, governments in trouble have sought foreign adventure (wars) to re-build domestic loyalty and enthusiasm about the fatherland.

We live in interesting times.  So does Xi Jinping.

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