http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
Can China Make the Changes Necessary to End the Trade War?
The US China trade war may be driving China to make tough decisions. But, can China make the changes necessary to end the trade war? A series of articles in The New York Timesdetails China’s rise to economic power and challenges it faces today.
Its goals – a complicated mix of juicing the economy, cleaning up the country’s air and water and meeting its people’s rising expectations – have become harder to reach. Its efforts to spur growth have left the country staggering under trillions of dollars in debt, while the world is taking aim at China’s industrial ambitions.
And after three decades of balancing freedom and authoritarianism, China may be leaning too far toward state control under Xi Jinping, the country’s top leader. The Communist Party may be putting too much stock in its own abilities at the expense of the entrepreneurs who drove China’s success.
The bottom line with China is that the folks who control the Communist Party intend to stay in control. Every time there is a choice between more economic, social and political freedom and a threat to Party authority, the Party wins. The problem for China is that it has become too successful and over-leveraged in its ambitions. The country has a huge and growing debt load and many wealth Chinese are taking money out of the country. It is one thing when Western observers warn of problems in China but when Chinese money “votes with its feet” there is trouble brewing in the land of managed capitalism.
2. The US China trade war may be driving
China to make tough decisions.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
3. But, can China make the changes
necessary to end the trade war?
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
4. A series of articles in The New York Times
details China’s rise to economic power
and challenges it faces today.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
5. Its goals – a complicated mix of juicing
the economy, cleaning up the country’s
air and water and meeting its people’s
rising expectations – have become harder
to reach.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
6. Its efforts to spur growth have left the
country staggering under trillions of
dollars in debt, while the world is taking
aim at China’s industrial ambitions.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
7. And after three decades of balancing
freedom and authoritarianism, China may
be leaning too far toward state control
under Xi Jinping, the country’s top leader.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
8. The Communist Party may be putting too
much stock in its own abilities at the
expense of the entrepreneurs who drove
China’s success.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
9. The bottom line with China is that the
folks who control the Communist Party
intend to stay in control.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
10. Every time there is a choice between
more economic, social and political
freedom and a threat to Party authority,
the Party wins.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
11. The problem for China is that it has
become too successful and over-
leveraged in its ambitions.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
12. The country has a huge and growing debt
load and many wealth Chinese are taking
money out of the country.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
13. It is one thing when Western observers
warn of problems in China but when
Chinese money “votes with its feet” there
is trouble brewing in the land of managed
capitalism.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
14. Theft of Jobs and Intellectual
Property
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
15. Since China entered the world trade
organization and multiplied its exports,
millions of jobs disappeared in North
American, Europe and elsewhere.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
16. Many in the West said that China was
simply taking the low paying jobs and
that the West retained the lead in
technology.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
17. But, for firms to work in China they need
a Chinese partner and the Chinese
partners end up stealing Western
technology and competing with their
Western “partners.”
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
18. Along the way government sponsored
factories have survived by connections
within the Communist party going back
to the days of the Long March.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
19. For the trade war to come to an amicable
end, China needs to let foreign firms
compete on her own soil and its needs to
let companies in its manufacturing sector
rise or fall on their own merit.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
20. And, avoid antagonizing even more of the
rest of the world.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
21. Can China make the changes necessary to
end the trade war?
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
22. The issue is not China making those
decisions but an increasingly centralized
Chinese hierarchy digging in to protect
their control and virtual ownership of
China.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
23. What will happen in China if the trade
war makes things a lot worse?
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
24. An educated guess is that the Communist
Party will exert greater control of people’s
lives, the media, and the economy.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
25. There will be no public discourse but only
pronouncements by the Party.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
26. Those who can move assets offshore will
do so.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
27. The Yuan will fall even farther, and China
will accelerate its practice of propping up
prosperity by funding big projects even as
debt soars.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
28. The Communist Party will do everything
that it can to maintain control even as
China suffers.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/
29. In short, the trade war in some form or
other will continue for a long, long time.
http://www.forexconspiracyreport.com/can-china-make-the-changes-necessary-to-end-the-trade-war/