Xi Jinping cemented his 3rd term and vows to make China a modern socialist power by 2035 and the leading global power by 2049. However, his steps to getting there seem contradictory with current policy measures.
- Ensuring technological self-sufficiency
- How is it going to do this with a strengthening NATO and crippling US curbs on China's semiconductor industry?
- Boosting per-capita GDP
- How will it recover from an ailing property sector and COVID zero policies?
- Opening more to the world
- How can it do this while suppressing free speech and being able to shut down commerce on a whim?
- Taking Taiwan
- How can it do this while risking an extremely costly war?
Investors and the markets reacted accordingly to these contradictory policies with a selloff in the Hang Seng Index and a weakening of the yuan. Is it time to pull out of China?
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