Xi Jinping’s speech signals global economy harm on anvil

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News Analysis

By Manish Anand

New Delhi, October 17: A dictator generally takes at least five years to wear iron gloves to build a paranoid society to command absolute submission. Chinese President Xi Jinping is now an established dictator, for he’s invoking fear to command his people to lie on their stomachs, with heads buried in soils.

The global economy already wrecked by the artificial supply constraint on account of the ‘Zero Covid Policy’ will be further hammered by China, as Xi helms his country indefinitely. Several market participants, who have billions of dollars of asset management under their belts, have taken note of the mention of ‘military’, ‘socialism’, and ‘shared prosperity’ in the inaugural speech of the 20th Communist Party Congress on Sunday.

Xi spoke for two hours, while his speech remained focused on ways to further instill fear in the people. Half-way through his second term, Xi had begun the purge of the Chinse billionaire, as one by one they disappeared from the scenes and their companies were battered on the bourses. The tech companies of the Chinese origins have been decimated after Xi launched his purge.

The dictator is no more interested in billionaires. He wants them shut in camps, and ‘Zero Covid Policy’ is a convenient tool, and Xi has given enough hints that the coercive restrictions would continue. China has deep pocket, and can burn cash to turn heat on the developed world by stoking inflation with supply constraints to push them into deeper sufferings. At the outbreak of the Covid-19, the whisper of economic war against the developed world was stated in hushed voices, which may need immediate attention of the developed countries.

The hedge funds and the international brokerages have noted that Xi gave a miss to the ideas of reforms and opening up in his speech, which signals that he would focus the national resources to further enhance the strength of the military and gain naval superiority, which would require heavy public investments. Xi has not ruled out the use of the military to further the agenda of ‘One China Policy’ with the unification of Taiwan, which will require a much improve naval force to counter the dominant warships of the US in the nearby waters.

Xi’s second term was marred by increasing conflicts with neighbours, including India and the countries in the South China Sea. In his third term, Xi would by all accounts be a ruthless dictator, who may seek enhanced confrontations to further crush his people to keep their heads buried in soils.

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