The video above offers a helpful summary of the challenges facing China’s economy, which is slowing after decades of rapid growth.
The challenges are real, but there’s a question as to whether China’s leadership under Xi Jinping is up to the task. Loosening the grips of the government is required, but Xi is going in the opposite direction.
We Chat has become a very popular app in China, with one reason being you can do so much from the app as explained above. Now Silicon Valley is taking notice and being “inspired” by the app, as even Mark Zuckerberg seems to have noticed. Expect Facebook Messenger to start having much of the same functionality as WeChat.
The stupidity of Chinese leadership and Xi Jinping regime seems to know no bounds:
China’s ruling Communist Party has banned its 88 million members from playing golf, having sex outside of marriage and partaking in “extravagant eating and drinking,” according to the country’s state media.
This latest development is particularly troubling, as the Chinese government appears to be singling out a respected business journalist for their joke of a stock market. Read about the forced confession here.
The game in China has always been rigged. It was easy to keep playing this rigged game as Chinese industry fueled massive growth, the much of the fruits of that labor has been wasted on unnecessary projects and plenty of graft and corruption.
Throw in a new leader obsessed with consolidating power and promoting Chinese pride and strength over addressing real economic issue, and now you have real problems. Xi Jinping may turn out to be a complete disaster for China.
When China was booming, they couldn’t keep up with the demand for steel and cement. Now things are slowing down, and the over-investment in factories is leading to zombie factories that the government is afraid to let die.
When you read this article you get another glimpse as to why the China experiment may end badly. In the rush to move hundreds of millions of people from the farms to the cities, too much money was poured into more factories and apartments that weren’t needed. Central planning can work for a while, but then economic reality sets in, and projects built more to line the pockets of local officials end up being a huge drain on the overall economy.