George Soros writes that Xi’s “crackdown on private enterprise shows he does not understand the market economy. … Xi Jinping, China’s leader, has collided with economic reality. His crackdown on private enterprise has been a significant drag on the economy.”
Translated out of Orwellian Doublethink, the “crackdown on private enterprise” means cutting back on what the classical economists called rent-seeking and unearned income. As for its supposed “drag on the economy,” Mr. Soros means the economy’s polarization concentrating wealth and income in the hands of the richest One Percent.
Soros lays out his plan for how U.S. retaliation may punish China by withholding U.S. funding of its companies (as if China cannot create its own credit) until China capitulates and imposes the kind of deregulation and de-taxation that Russia did after 1991. He warns that China will suffer depression by saving its economy along socialist lines and resisting U.S.-style privatization and its associated debt deflation.
Mr. Soros does recognize that China’s “most vulnerable sector is real estate, particularly housing. China has enjoyed an extended property boom over the past two decades, but
— source michael-hudson.com | michael hudson | Sep 2, 2021