The crash on the Chinese stock market seems unstoppable. The first voices are now also being heard from academic circles calling for trillion-euro programmes to stabilize the markets, even after the immense interventions by the Communist Party. It is becoming increasingly clear at this point that the ''controlled'' Chinese economic model is causing considerable misallocations, which the market is trying to clear out of the way in this way. it will be interesting to see how the communists in China will tackle this problem.
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15 sats \ 0 replies \ @Undisciplined 5 Feb
When I went to China (which was about a decade ago at this point), I was struck by an impression that the CCP had already picked the low hanging fruit, so to speak.
Coming out of Maoism, there were a tremendous number of ways to liberalize the economy that posed minimal risk to the rulers and were even to their benefit.
However, they hit a point where further moves towards free markets would come at the expense of political power. There was a phrase for how they were trying to proceed that translated to something like "groping for stones in a riverbed to stand on". In other words, they had no idea what to do and knew they were on the verge of falling over and being swept away.
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