By Tanner Brown, Martket Watch, 29 September 2019, Read the original article here.
After decades of explosive growth, the country faces a slew of worrying circumstances
On Tuesday, China will celebrate 70 years since the founding of the People’s Republic.
After decades of turmoil during the Mao era, the country opened up and pulled nearly a billion people out of poverty, and now stands on the brink of overtaking the U.S. economy as the most powerful in the world.
Change in the country has been breathtaking. Infrastructure, public transportation, military prowess, and technological innovation have made China one of the most dynamic countries on Earth.
But its political system remains ossified, under the firm grip of President Xi Jinping, who is set to remain in power for an unprecedented third term. Xi’s campaign to squash his political rivals has largely been a success. But a weakening economy means discontent could exacerbate dissatisfaction among more reformist wings of the party. China’s economy is now growing at its slowest pace in a generation, and may clock in at under 6% soon — a years-long cooling that has been accelerated by the U.S.-China trade war.
At this proud moment, having returned to great-nation status, China faces numerous potential trouble spots. Debt remains unwieldy, wages are increasing and have begun to make exports less competitive, a bursting of housing bubbles would not be out of the question, and the country’s currency and stock markets remain immature and unpredictable.
And, of course, there’s Hong Kong, where impassioned anti-mainland protests have now surpassed 100 days, breathing new life into a movement that sees an overbearing Beijing angling to curtail Hong Kong’s thriving democratic way of life.