Read this article about us all holding on to our knickers with regard to the China situation.
The author cites the cause of the problem being the shift toward free-market.
The problems in liberalization of capital markets are causing instability.
China is a fine place to invest after all.
Having lived there, I know many of the problems first hand.
Yes, China is a bureaucracy.
And as they say, the bureaucracy feeds the bureaucracy. Making the bureaucracy feed the capitalism may cause problems.
Not just, as the author suggests, in the logistical, functional, and organisational aspects, but also in cultural. And China has 5,000 years of culture as any Chinese man will be more than willing to tell you.
Making a cultural shift from Communist Bureaucracy to Free market capitalism takes time. Maybe a generation. Maybe longer. …
This stat has been bandied about in the absence of any believable figures from the government for some time…
Since China’s property bubble went pear-shaped and threatened to pop, figures having been fighting a turning tide of debt fueled domestic demand, and generally flat export and rising wages.
June’s black-Monday on the Shanghai stock exchange have only highlighted what many China insiders have been speculating for a long time.
The whole thing’s a house of cards and it’s not a case of ‘if’, but ‘when’.
The authorities are holding out – perhaps in the hope they can dump the blame elsewhere when things eventually do go tits up. The current South China Sea situation plays into this whole scenario…
Many reckon that rather than risk political and economic destruction, it would be simpler for the government go to war and call for national cohesion in the face of the ‘foreign devils’ who threaten the heavenly kingdom’s 5,000 year old culture and envy at it’s regime.
Here’s the video.
Spratly Islands. Before and after pictures: September 2015