https://www.americanthinker.com/articles/2022/10/the_china_lie_exposed.html
The Chinese Communist Party has held only 20 party congresses in its history, one every five years, and few as notable as the just-concluded meeting at which President Xi Jinping claimed his unprecedented third five-year term. In a two-hour address, Xi aggressively signaled that China will focus on national security, invest in a “world class military,” “develop unmanned, intelligent combat capabilities,” and unrelentingly pursue the takeover of Taiwan under the banner of “reunification.” All this against a backdrop of asserted rising external threats from the West and a forecast of “high winds, choppy waters and dangerous storms.”
It did not take long for Chinese investors to react. On Monday, the Hang Seng plummeted 6.4% (equivalent to a 2,000 drop in the Dow Jones index), for the largest one-day drop since November 2008. The index is down 42% for the year and within 2% of its 52-week low. In the tech sector, e-commerce giant Alibaba fell 10%, bringing its losses to more than $600 billion since it peaked in October 2020. Chip stocks are being dumped in response to expected U.S. export controls. The property sector is facing unrelenting pressure from massive over-building and excess debt. Chinese entrepreneurs are leaving the country. Official and unofficial accounts track massive movements of capital to havens outside of China. All in all, quite the contrast to President Xi’s boasting rhetoric of “the great rejuvenation of the Chinese nation.”
Hidden in the current malaise is a far more startling fact. The Hang Seng index is now officially flat since 1997. In the comparable period, even after U.S. market declines, the S&P index is up 3.2x, while the tech-heavy Nasdaq is up 5.9x. These numbers lay bare the fundamental lie that communism can coexist with, and channel free enterprise growth. Twenty-five years of stagnation, especially during the boom in technology, contradicts the narrative promoted by Chinese leadership, believed by many, that China will inevitably eclipse U.S. economic performance. Doubling down, liberal pundits such as Thomas Friedman fawn over the command and control powers of the Chinese government, in contrast to our messy democracy, especially when it appeared China was in an unstoppable ascendency from the 1980s onward.