We have reason to believe the unthinkable is happening to China's president

The one thing the West has taken for granted in China is that the Chinese Communist Party is unified behind its leadership.

But now, under the pressure of an economic slowdown and a stock market in free fall, we are likely seeing the CCP fracture in a way we've never seen before.

It seems some factions within the party are turning away from President Xi Jinping behind closed doors and at high-level retreats

Link

It seems there are fractures within Chinas government with officals in China unhappy with President Xi Jinping on the direction he's taking China.

"The New Normal" is the government's name for the inevitable slowdown that has come from China's transition from an economy based on investment to one based on consumption. It's a long-term reform play, and to many one that's long overdue.

But it comes with major pain. Xi Jinping had prepped his people for lower growth, but no one expected the slowdown would come so hard and fast.

There are those that want Xi to turn back but Xi isn't turning back. So will this turn into a power struggle or will Xi silence the other groups.

Another climatic headline with no story.

"We" who's we?
"The unthinkable" is it really unthinkable for people to question their government ???

a reply to: Ancient Champion

Chinese are new to the world markets. Now it's all going pear shaped but Chinese people don't understand Capialism so won't know what to do to help themselves. The safe route will be to go back to the olden days

Yes I saw this today as a run off from another article.
If there is behind the scenes bitching, that's about par for what happens here in the West. But the cat's out of the bag, at least in the more urban parts of Southern China, they have a comsumer society now, and that isn't going to reverse any time soon. If there is any old guard left, the old ideas will cut no ice with the younger generations any more, so they'd be wise to STFU and let Xi get on with his version of, 'Quantitive easing' . Don't forget either that China has full blown industries making their own stuff, mind you a certain home brand SUV is a ringer for a BMWX5 as well as other home blown vehicle copies, and also full production Euro vehicles built there, and exported to here...big money stuff too.
I don't think China will take much hurt.

a reply to: muSSang

Kind of my thoughts. Who is we? Plus there's always stories about internal strife somewhere.

originally posted by: ufoorbhunter
a reply to: Ancient Champion

Chinese are new to the world markets. Now it's all going pear shaped but Chinese people don't understand Capialism so won't know what to do to help themselves. The safe route will be to go back to the olden days

That would be great, but they are now hooked in by the 'filthy lucre'. They may not fully understand Capitalism, but they know it's evil enough to remove them from their positions, unless they start buying in to it.

Maybe they'll cash in some of the U.S Bonds early? They could raise enough capital to sort their own economy out.

originally posted by: Cobaltic1978

originally posted by: ufoorbhunter
a reply to: Ancient Champion

Chinese are new to the world markets. Now it's all going pear shaped but Chinese people don't understand Capialism so won't know what to do to help themselves. The safe route will be to go back to the olden days

That would be great, but they are now hooked in by the 'filthy lucre'. They may not fully understand Capitalism, but they know it's evil enough to remove them from their positions, unless they start buying in to it.

Maybe they'll cash in some of the U.S Bonds early? They could raise enough capital to sort their own economy out.

Well, there is a button to push. Not discussed here is that Xi Ping is fully engaged in a anti-corruption drive, that's hurting a lot of people, but not ordinary people, he's going after the military big time, that's a big thing to the extent that the military is becoming wary of would be corrupter's..and guess what, those corrupter's are not necessarily Chinese at all, they are from elsewhere.
The Chinese, Central military Commission is almost all powerful, but Xi Ping has put at least a couple of those on hold by arresting them. One had money and jewellery that took 12 trucks to haul away, and a week to count it all. WTF!
Don't forget either that China has been dealing with the West for 50 years in some cases, Scania has been there for that long. Volvo group, Volkswagen all have companies building there and exporting to the West, and it's big, big money. Many of those Chinese home companies have changed their names after after amalgamations, blah blah exactly the same as in the West over many years, becoming just as monopolistic as in the West. They are not new to anything much.

The chinese government hides more than it shows. Internal tensions are nothing new, there are multiple groups in what we call just communist party, but is not a "party" like we have in the west and is not even like the soviet communist party.
Their capitalism is quite different simply because they aren't as dependant on other markets than we are. Big corporations there ARE the government, it's not like the west where corporations are ABOVE the government.

This difference is imho key to understand how the chinese engage the "free market". While the western countries govts are used to achieve supranational corps interests, they use corps to achieve govt interests. It's a travesty capitalism to just be part of the game and the objective is more or less getting back to the old days of the silk road, where China produces and sells and others buy and the influx of wealth is one-directional. This changed in the 19th century when the British empire started tampering with this system to break this one-directionality (see the opium wars).

What happens inside the party will stay inside China, and I also have no doubts that these "tensions" are exxagerated by the media in a rampant economic war that is taking place. Hopefully they'll realize that China has much less to lose in a war to the bottom, so if this crash is western driven the people that will lose the most are us.

Multinational corps couldn't care less if their flag is stars and stripes of an half moon or an alien grey face, the only thing that matters is control at the expense of what were once sovereign states.

originally posted by: Mastronaut
The chinese government hides more than it shows.

If you think the Chinese government is bad, just wait till you tear open the guts of the Cancerous US of A and expose all that is hidden. The Chinese learned from us, we taught them.

originally posted by: Cobaltic1978

originally posted by: ufoorbhunter
a reply to: Ancient Champion

Chinese are new to the world markets. Now it's all going pear shaped but Chinese people don't understand Capialism so won't know what to do to help themselves. The safe route will be to go back to the olden days

That would be great, but they are now hooked in by the 'filthy lucre'. They may not fully understand Capitalism, but they know it's evil enough to remove them from their positions, unless they start buying in to it.

Maybe they'll cash in some of the U.S Bonds early? They could raise enough capital to sort their own economy out.

What do you expect the result of China cashing in the U.S Bonds to be? Will it have any implications for us in the UK or will it just affect the USA?

originally posted by: WCmutant

originally posted by: Mastronaut
The chinese government hides more than it shows.

If you think the Chinese government is bad, just wait till you tear open the guts of the Cancerous US of A and expose all that is hidden. The Chinese learned from us, we taught them.

I think every government is bad, I didn't imply that China is worse in any sense. I'm just saying that we shouldn't assume that China has what it shows and drawing conclusions on what we THINK they have is limiting. Same limit is assuming China works like the west.