One of the reasons financial markets went out of control, is because president Xi Jinping is mostly focused on politics and geopolitical ambitions, says political analyst Arthur Kroeber in the Washington Post.
The Washington Post:
Kroeber, (managing director of Gavekal Dragonomics in Beijing) is also skeptical. While Xi has talked of markets playing a “decisive role” in resource allocation, he has also reaffirmed the “dominant role” of the state sector. His government has reined in excessive credit growth and excessive investment, but it has failed to make good on promises of deregulation and curbing the power of state-owned enterprises, Kroeber wrote in a note to clients.
“We are increasingly of the view that this mediocre result arises not because a bold and visionary reform program has broken up on the reefs of political opposition, but because the main aims of China’s leader Xi Jinping are political and geo-strategic, while his economic goals are contradictory,” he wrote.
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