Perspectives from FH
https://financialhorse.com/will-i-sell-m...newsletter
Everybody assumes that Xi has this magical phone – that he just has to make 1 call and the problem goes away.
In reality, China is a sprawling country with many levels of bureaucracy.
To put things in perspective – there are 10 million civil servants in China. That’s basically everyone in Singapore, men women and children, times 2, working for the government in China.
It’s incredibly hard to manage and run a system that massive. Just getting everyone to pull in the same direction is already a feat in itself.
China’s Growth will shift
As the crackdowns play out, we’re starting to see Xi’s vision for the new China.
Namely – more regulation, clamping down on software tech, redistribution of wealth, capital reallocation (“common prosperity”), deleveraging, getting rid of bad behaviour etc.
Pivoting the economy away from real estate and non-strategic software tech.
Into things like hi-tech manufacturing, robotics, electric vehicles, semiconductors.