China business blah-blah

WSJ

Mr. Xi has a daunting problem on his hands: The consumer economy isn’t expanding fast enough to make up for lost manufacturing. GDP growth has been slowing every year since 2011. E-commerce may be booming, but bricks-and-mortar shops are shedding staff. Mass layoffs loom in “zombie” ?state enterprises that crank out products in massive oversupply, like steel rods and cement, and survive only on government-directed handouts.

The slowdown threatens a cherished Communist Party goal of doubling per capita GDP by 2020, a year ahead of the centenary of the party’s founding, compared with its level in 2010. For that to happen, growth must not fall below 6.5%. Last year, it was 6.9%. Yet economists question whether this growth is real or merely an artifice of state planning. Bank loans build airports that land few flights and roads with sparse traffic.

Premier Li Keqiang is pumping money into high-tech manufacturing, like semiconductors, while promoting “mass entrepreneurship and innovation” to create jobs; 4.4 million startups got off the ground last year, with generous government help.

At stake is the legitimacy of the Communist Party, rooted as it is in delivering economic performance. Driven by fears of his party’s demise, Mr. Xi has conjured forth a whole new rationale for Communist rule based not on ever-growing prosperity but on nationalism and military prowess.

The reason we post this is to avoid opining on the issues of the day, namely the deep corruption in the west and the equally deep craziness. Let Mark Steyn do that. Oh yeah, and what about the fulsome media? Down there in the corruption swamp. How did everything get so disgusting so fast? Actually, we know a little of the answer.

When the establishment types take enough leave of their senses that their clique believes in utter nonsense like global warming, sanity, truth, and rationality have left the room. Narrative replaces truth, and the self-aggrandizing “elite” requires a large group of people to look down upon. Obviously whatever the hoi polloi believe is by definition wrong, for they are not the pneumatikoi. Leftism in the west is the most powerful religion, openly so now since the end of the Cold War. It’s a widening gyre, and requires harsh, maybe even catastrophic events to force reality down everybody’s throat. Don’t worry, they’re coming.

One Response to “China business blah-blah”

  1. feeblemind Says:

    “Mr. Xi has a daunting problem on his hands. . . At stake is the legitimacy of the Communist Party,”

    Indeed.

    Thus the pivot to national security and jingoism.

    That will work for awhile, but what comes after that?

    As for here at home, I no longer keep up with all the scandals and corruption. It simply infuriates me and to what end? The cloud people can get away with anything while the dirt people are impoverished, insulted, denigrated, and have their noses rubbed in politically correct thinking for good measure.

    If comments in the blogosphere are any indication, the resentment and hatred from the little people towards their ruling masters is growing more and more intense.

Leave a Reply