Public messaging that Xi Jinping is further consolidating power at the 20th Party Congress would make a financial crisis in China more probable.
Security guards try to keep protestors angry about failed investments with Hunan Bofeng Asset Management Ltd. out of a branch of the Industrial and Commercial Bank of China in Changsha, Hunan. Credit: Chinatopix via AP
China’s political system is preoccupied with stability, particularly in the runup to a quinquennial Party Congress meeting. But there has been little understanding of how the Communist Party’s efforts to cultivate a perception of political stability have interacted with financial stability in China. Nor has there been a full appreciation of how the bargain between the Party and Chinese citizens, that has broadly sustained this financial stability in the recent past, has now fundamentally cha
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