Key Sentence:
- The point of analyzing China and its failure at Evergrande is usually “the government will save things” and “China can’t have a crisis.”
Both statements are based on a decade-long belief article that China’s leaders are omniscient. And omnipotent and have an extraordinary range of instruments in their policy mix. The more incorrect this opinion is, the stronger it will be asserted.
Over the past six months, Xi Jinping and his thinking have been elevated to levels previously. Only enjoyed by Mao in state media and leadership statements.
In its public discourse, the party has risen to become a demigod, with a firm claim that it can control everything.
As we try to determine whether Evergrande’s death will trigger a systemic China’s Approaching Catastrophe crisis in China and international markets. It may be helpful to read a new book by a disgruntled businessman named Desmond Shum: Red Roulette. And Hao Chen about the emergence of a mafia-like business system in China.
The main conclusions of this work are twofold: The cost of China’s rapid growth is a personal risk. For upper-middle-class families and private sector business tycoons China’s Approaching Catastrophe. And government business management is chaotic, disorganized, short-term, and abuses its stated public goals.
Why do people inside and outside China keep realizing this? A quick city taxi ride to any city in China reveals a dangerous mess that drives traffic management across the country. Given the seemingly chaotic system, why do people assume that banking, capital allocation, crisis management.
The controlled press and most of the voices on social media are friends of the government. Whenever China faces a crisis – massive unemployment due to state enterprise restructuring. Asian debt crisis, global financial crisis – the media hides the negative and emphasizes the positive. The more incorrect this opinion is, the stronger it will be asserted.