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Where To Now For The Chinese Economy?
I don't know what to make of the Chinese economy these days, which puts me in good company: Nobody else knows what to make of it either.
On Monday, the PBoC injected a net CNY289 billion via MLF (the rate was unchanged) in another bid to keep liquidity ample and bolster growth at a time when the specter of a property market meltdown continues to weigh on sentiment and domestic demand still looks anemic. It was the largest monthly cash infusion in nearly three years.
Evergrande was back above t
Xi’s fingerprints are all over the lever that triggered this swirling mess of an economic toilet. Not unlike Putin undermining the Russian economy by making war in Ukraine, Xi is incapable of recognizing and addressing his failure to lead and manage China’s economy and he is hurting his own country in the process.
He will blame knock-on effects of Western economic policies, and won’t be entirely incorrect. But one-man rule? His fanaticism and egomaniacal brand of leadership cannot right the ship. By continuing to imagine his hand is on the lever of control, he will only do harm to his country. I recall you may have said something to this effect already, Walt, but Evergrande is just a precursor of what is to come. Jeez, the world is bad enough. Nothing like ignorance and ego to worsen it.
No where good.
About 100,000 Chinese immigrated into the US and Canada in 2022. That number is expected to rise over the next decade.