Shanghai Has Fallen: China’s Shining Star Is Now a Ghost Town
In addition to the "Demographics and Debt" problems affecting all of China, Shanghai may have a Political one. When I hear of Xi's "anti-corruption drive," I think Political Purge. When I hear "Common Prosperity," I think "redirecting resources away from my opponents." And "fancy new methods of production?" That means directing resources towards supporters. Meanwhile, "Wolf Warrior Diplomacy" can scare off foreign investors who help prop up political opponents. Shanghai could be on the wrong side of CCP political infighting, where undermining the local economy also undermines a CCP clique (ie, the Jiang Zemin faction) that's on the outs with Xi. The new Great Helmsman is steering power towards the interior. As resources leave, so do the people. Xi's departure could bring a partial revival.
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