This weekend marked a major phenomenon as Chinese leader Xi Xinping consolidated his powers by having his views cemented in the country’s constitution. The Washington Post says that:
“The amendment of the party constitution effectively confirms Xi Jinping’s aspiration to be the Mao Zedong of the 21st century — that means a top leader with no constraints on tenure or retirement age,” said Willy Wo-Lap Lam, a political expert at the Chinese University of Hong Kong.
The reason that this is important is because Xi Xinping has been a strong believer in growing China’s military and economic power in the region. His strategy has seen his government implement the “One Belt, One Road” initiative to allow China to dominate the Central Asian markets It has seen China contesting islands to expand its territory and strategic footprint in the highly volatile region of the South China Sea. His government has implemented a highly competitive economic policy that is putting the pressure on American businesses. This approach has been quite effective at establishing China as the preeminent power in the region.
The Chinese finance minister, Xiao Jie, also made another important announcement. According to CNBC, the minister said that:
the country’s 2017 fiscal deficit will be less than the budget deficit target of 3 percent of GDP due to stronger-than-expected economic growth, South China Morning Post (SCMP) reported on Monday, citing a statement to the newspaper.
These positive numbers coincide with another major development which saw Premier Li Keqiang saying “China would cut taxes and corporate fees by 1 trillion yuan this year.” These policies are putting China in a position to attract new companies and make older ones consider expanding their operations.
After analysing these changes, it becomes clear that China is still committed to becoming the leading power in Asia. Their leadership is now solidified for years to come and their aggressive policies could see the country flourish. Investors should take these things into account if they are considering making any Asian investments going forward.
To read The Washington Post’s article on Xi Xinping’s new constitutional enshrinement, click here.
To read CNBC’s article on China’s better than expected fiscal deficit numbers, click here.
[grwebform url=”https://app.getresponse.com/view_webform_v2.js?u=BKTzq&webforms_id=14431602″ css=”on” center=”off” center_margin=”200″/]
You may be interested
Job Hiring is Picking Up as Employers and Consumers Gain ConfidenceLamont J - March 29, 2021
The recent government stimulus for small and medium-sized businesses, personal stimulus checks, and declining Coronavirus cases, are all great news…
Fed Could Maintain 0% Interest Rate Until 2024Adam R - March 26, 2021
The Federal Reserve is holding its target interest rate in a range of 0.00% - 0.25%, even while the economy…