Donald Trump Has Some Surprising Allies in U.S.-China Tariff War - Bloomberg
...Their common enemy: the Chinese industrial state, an animus summed up in China by the lament “guo jin, min tui” — the state advances, the private sector retreats.
... a pervasive rent-seeking culture in which bribing officials was necessary to secure business deals, land and bank loans.
...Some wealthy entrepreneurs are moving their money offshore because they fear their tainted earnings will be confiscated. Others are putting off hiring and investing as the economy slows.
...The fact is that the world needs Chinese private enterprises to succeed if China is to remain a driver of global growth. And, conveniently enough, their demands mirror those of multinationals: better access to services markets that are currently dominated by state monopolies in energy, finance, telecommunications and transport; better protection for their intellectual property; a reduction in the subsidies, cheap financing and other advantages enjoyed by the state sector; and a desire to be left alone by meddling bureaucrats.
...the economic slowdown, exacerbated by trade tensions with the U.S., has stunned the Chinese leadership.
...The International Monetary Fund calculates that while China’s per capita GDP, measured in terms of purchasing-power, is similar to Brazil’s, its consumption per capita is comparable only to Nigeria’s. If Chinese consumed like Brazilians, their spending would double.
... a comprehensive blueprint for economic reforms that would energize the private sector already exists. Five years ago, when Xi ascended to power, he unveiled a 60-point plan that pledged “to let the market play a decisive role in the allocation of resources.” Unfortunately, the document has been gathering dust ever since. Resurrecting those abandoned pledges in the name of rescuing private Chinese enterprises would give Xi the political cover to accede to some of Trump’s demands. A two-for-one bargain is available: China would be wise to take it.
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