Friday , September 17 2021
Home / Project Syndicate / China’s Animal Spirits Deficit

China’s Animal Spirits Deficit

Summary:
The Chinese government has taken dead aim at its dynamic technology sector, the engine of consumption-led economic rebalancing. The authorities' recent actions are symptomatic of a deeper problem: the state’s battle to control the energy of animal spirits could sap the confidence of households and businesses. NEW HAVEN – When it comes to the Chinese economy, I have been a congenital optimist for over 25 years. But now I have serious doubts. The Chinese government has taken dead aim at its dynamic technology sector, the engine of China’s New Economy. Its recent actions are symptomatic of a deeper problem: the state’s efforts to control the energy of animal spirits. The Chinese Dream, President Xi Jinping’s

Topics:
Stephen S. Roach considers the following as important:

This could be interesting, too:

Tim Harford writes Why Covid regulations may be around longer than you think

David writes Sales Tax Collections in Fargo and Grand Forks

Miles Kimball writes Life Lessons from Math: Sequencing and Pacing Projects—Joseph Kimball and Miles Kimball

(Michael Ward) writes Hidden Costs of Software Migration

The Chinese government has taken dead aim at its dynamic technology sector, the engine of consumption-led economic rebalancing. The authorities' recent actions are symptomatic of a deeper problem: the state’s battle to control the energy of animal spirits could sap the confidence of households and businesses.

NEW HAVEN – When it comes to the Chinese economy, I have been a congenital optimist for over 25 years. But now I have serious doubts. The Chinese government has taken dead aim at its dynamic technology sector, the engine of China’s New Economy. Its recent actions are symptomatic of a deeper problem: the state’s efforts to control the energy of animal spirits. The Chinese Dream, President Xi Jinping’s aspirational vision of a “great modern socialist country” by 2049, could now be at risk.

At first, it seemed as if the authorities were concerned about a one-off personnel problem when they sent a stern message to the irreverent Jack Ma, founder of Alibaba, the world’s largest e-commerce platform. Ma’s ill-timed comments at a Shanghai financial forum in late October 2020 about the “pawnshop” mentality of the bank-centric Chinese financial system crossed the line for China’s leaders. Early the following month, a record $34 billion initial public offering for Ant Group, the behemoth fintech spinoff of Alibaba, was canceled less than 48 hours before the scheduled listing. Five months later, Alibaba itself was fined a record $2.8 billion for alleged anti-monopoly violations.

And now it’s Didi Chuxing’s turn. Didi, the Uber-like Chinese ridesharing service, apparently had the audacity to raise $4.4 billion in US capital markets, despite rumored objections from Chinese officials. After forcing the removal of more than 25 of Didi’s apps from Chinese Internet platforms, talk of a fine that...

Leave a Reply

Your email address will not be published. Required fields are marked *