There are 800 million Chinese people not part of the economic boom of the past 30 years who will soon ask for their ‘fair share’. Social safety net, higher wages, healthcare. Inflation, especially food prices, is heating up. Factory workers can make more money staying on the family farm.
I expect China to have major social unrest within 2 years. Similar to the Mideast but on a much larger scale. (I’m in China now on business).
>>Inflation, especially food prices, is heating up.<<
China’s food prices face the same inflation burden that we do which is caused by rising oil prices. Their social safety net, higher wages, and healthcare are also affected by rising inflation.
I agree. The most dangerous time for a government is when things are getting better, but not quickly enough and mostly only for a few.
China NEEDS to expand its middle class, consisting of its engineers and managers. In order to do that, it MUST allow some degree of free market, which results in winners and losers. To retain control, it cannot allow the Communist Party members and their families to be losers. Meanwhile, the peasants, who were raised on the slogans of Mao about egalitarianism are seeing Party members running around in cars talking on their smartphones, while peasants worry about starving if the harvest is not good.
Meanwhile, you have a middle class consisting of productive people who must give up a good chunk of their income to supporting unproductive Party leeches. The combination is not good...