As children we learned in school (those of us old enough to have been to school back in olden times when schools actually were for the education of children) that the Great Wall of China was so impressive it could be seen from space. We learned that the purpose of the Great Wall was to keep out the Mongol Hoard raiders from the Eurasian Steppe. We might also have learned that whatever the original purpose of the Great Wall it later proved itself useful for the imposition of duties on goods traveling along the Silk Road. Economic growth has always been good for people, however it may be achieved.
China’s economy suffered greatly under the brutal dictatorship of Moa Tse-tung. But about 40 years ago, just about the time of President Nixon’s 1972 visit to Chou En-lai, China embarked on a lessening of government control to encourage economic growth. Real change came in 1978 under Deng Xiaoping. China’s economy responded immediately and China has enjoyed rapid growth of around 9% annually over that time.
It appears that government intervention in the Chinese economy coupled with massive government debt is now threatening to slow it all down, perhaps dramatically. The new wall of China that threatens its economic future is its Communist government. Despite all the reforms of the past 40 years China remains in the grips of a crime family, the best way to describe the Chinese Communist rulers. Communism everywhere it has existed on earth is rule by a criminal gang.
Xi Jinping, China’s current “premier” ruler has secured far more power than his predecessors. There’s a problem with that. Mr. Xi does not believe in free markets. That’s bad, because all of China’s economc gains will be cut short by the imposition of a new Great Wall of communism.
China’s Economic Reforms Have Hit a Wall. Despite the promises of reform [Xi Jinping] made in 2013, he was always a fair-weather liberalizer, and as soon as clouds formed over the housing sector in 2014, Xi quickly resorted to intervention to shift money into the stock market the following year. The sudden fall of the Shanghai and Shenzhen bourses that summer was met with ham-fisted measures that beget additional intervention. Reform now means not marketization but strengthening the state.
Free market capitalism is never going to be compatible with communist rule.