Just about everyone has a view on China’s economic troubles. Its deepening property crisis, deflationary currents, and increasing protests are all Asia observers can talk about.
Yet one very important voice is barely saying a word about the state of Asia’s biggest economy: President Xi Jinping.
This is true both rhetorically and by way of policy actions. The deafening silence on the latter front is especially perplexing as virtually every Chinese growth engine—from investment to exports to household spending—sputters.
Less quiet are commodity traders bidding down prices of oil, copper, and other commodities as China turns further inward. Hopes for smoke signals from Beijing that fresh stimulus might be coming are being dashed day after day. And keeping global markets on edge.
What gives? Hubris, for one. Like investment strategists sticking to their house view no matter what, Xi and Premier Li Qiang argue that China’s economic trajectory isn’t nearly as dire as naysayers think. A strong recovery, they seem to think, is just around the corner.