I talked about Glutted Economy in one of my blogs few weeks back.
Now we have clear signs of defaults with state run enterprises in China. To me, if China is not printing currency, it is bound to be a castle build from cards. The entire pack will cone down if it decouples with the global economy.
For generations now, we have learnt that businessman avoid confrontations and open war. China is a business economy, they cannot and should not entertain confrontation.
However, every leader has an ambition to grow beyond and Xi Jinping too wants to be the greatest leader that China ever produced, even beyond Mao.
In his stride to be the greatest, he is making mistake of opening multiple ambitious fronts, gleefully ignoring that it takes generations to transform a country.
If i were Xi, I would only focus on the technology vision and usher in that great vision. I would specifically avoid confrontations and that too with 26 neighbors or countries at the same time.
Understandable, these are rhetoric’s but that too consumes resources, efforts and time. Understandable those are distractions for internal citizenry but despite, at what cost?
Because, when you lose face in Mansarovar, and the four finger, China and especially Xi creates an awkward moment both internally and externally, that is not conducive to the image of a great leader.
To quote Xi Jinping, “ultimately, character and values, and not just talent, ability and popularity, are important determinants of actions and behavior”. Xi may once again have to take cognizance of the four traditional Chinese values of “courtesy, righteousness, honesty and shame”. Xi, it is time to scale back and stick to basics.
China braces for multiple bond defaults at state-owned enterprises