The Chinese are feeling considerable financial pain. Their Belt and Roads initiative is costing trillions but produces little income. Their heavy industries (BYD, COMAC etc) are poorly run and are subsidized by the government. President Trump is hitting them hard with tariffs. The Chinese are devaluing their RMB, further reducing the money coming into the country. Non Chinese business are leaving in droves to move to other southeast asian countries.
Xi Jinping thought he could wait out the 2020 election but it looks like either,
A. Due to the cumulative effects of the above, he can't wait that long, or
B. He is afraid President Trump will be re-elected.
|