Economic Debate in China
Today’s (24 Feb) Stratfor update, Internal Divisions and the Chinese Stimulus Plan, provides a brief economic history of Chinese economic development as backdrop to an analysis of the political debate surrounding their US$600B stimulus program. The debate is apparently surprisingly public and seems to represent a genuine split in the political system. The fissure extends to the jockeying for power between the two heir-apparents, vice-premiers Li and Xi, as well as the widening split between the wealthy coastal and impoverished rural areas. Ultimately it could play out in serious social unrest as the huge migrant labor population becomes unemployed.
Interesting reading as backdrop for President Obama’s speech to the joint session of Congress tonight.