On August 31, the Wall Street Journal reported that “August data suggests China’s economy slowed further, particularly in services but also in the previously strong manufacturing sector”. The WSJ article blames Chinese “efforts to contain the Delta variant outbreak“.
There is no mentioning of a slowdown of the Chinese economy following the Chinese crackdown on various of its business sectors, like algorithms, businesses, cryptocurrencies, data laws, gaming, IPO’s in America, mortgage lending, private teaching, and – most of all – technology. At some point in time, the Chinese economy must feel the cold wind blowing from Beijing.
The Chinese president is talking about ‘common prosperity‘, which is similar to reducing inequality. WSJ: “Common Prosperity: Decoding China’s New Populism. Investors are realizing that President Xi Jinping’s rhetoric on inequality is far more than just empty sloganeering”.
More importantly, this is a Chinese return to ideology and a (temporary?) farewell to the (very) successful eras of Chinese pragmatism. Such severe (private) business restrictions should – and probably will – conflict with the Chinese ambition of becoming a global Superpower.
On the other hand, the current American president seems to adopt a more pragmatic and a less ideological approach. Both developments will benefit the American goal of increasing strategic competition with China (eg, Atlantic Council, Brookings, Carnegie, MIT, NDIA, RAND, US Senate).
To some extent, I’m surprised by the speed (rather than the timing) of the Chinese business reforms. In my view, there is an ideological war in China between Politics and the competing – subversive – belief systems: Data-Info, Money, and Technology. I still assume that the Chinese combination of Big Data, Big Money & Big Tech will eventually win this ideological war, despite the crackdown by the current Chinese president.
I’m most surprised by the number of enemies that the Chinese president is willing to make, both domestic and foreign. I doubt that this will end well for him. Money is (much) more powerful than a single politician.
“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.”
A quote by Sun Tzu (544 BC-496 BC), a Chinese general and military strategist, who “is traditionally credited as the author of The Art of War” (c. 5th century BC).
Cold as Ice (1977) by Foreigner
artists, lyrics, video, Wiki-1, Wiki-2
You’re as cold as ice
You’re willing to sacrifice our love
You never take advice
Some day, you’ll pay the price
I know
Note: all markings (bold, italic, underlining) by LO unless stated otherwise.
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