i Jinping has put the fate of his country and regime in the hands of others, especially the next leader of the country he considers an enemy, the United States. Yes, China’s ruler, who many consider the world’s most powerful figure, is, in reality, helpless.
How did that happen?
In short, Xi did it to himself. For largely ideological reasons, he has consistently rejected common sense advice to boost consumer spending to make it the basis of the Chinese economy, and almost all his recently announced stimulus measures will directly or indirectly erode consumption. “The chance of structural reform in Xi Jinping’s China is,” as Anne Stevenson-Yang of J Capital Research USA told me, “none.”
This means Xi has only one option left: export his way out of economic difficulties.
Although China’s exports have been soaring – they were up a stunning 12.7 per cent year on year last month – the growth is not sustainable. As Nobel laureate Paul Krugman pointed out in June to Bloomberg, global markets are not big enough for Xi’s plan to succeed. “We can’t absorb,” he said. “The world will not accept everything that China wants to export.”
www.yahoo.com/news/china-heading-collapse-xi-jinping-163350104.html
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