China’s former leader Deng Xiaoping allowed the country to embark on a liberal economy, while repressing communist ideology. That “China Model” helped economically, but it was only useful in a temporary transition, writes political analyst Shirley Ze Yu in the Interpreter. Now president Xi Jinping swallows Deng’s bitter capitalist poison pill, she writes.
What is Beijing’s worst nightmare? The trade war? The troubles in Hong Kong. No, says political economist Shirley Ze Yu. China’s real nightmare is a collapse of the property market, she writes in the South China Morning Post. “China’s property market is the grey rhino, overfed on massive liquidity steroids.”