In What Direction Will New President Xi Jinping Take China?


                                                                                                 

When I was in graduate school, I wrote a paper on the untapped markets of both the Soviet Union and China.  As a young business student, It was my belief that both countries offered the United States unlimited markets and every capitalist country needs to find new markets in order to maintain growth.  The one real concern were their Communist/totalitarian Governments.  Then came the fall of the Soviet Union, the reunification of Germany and the loosening of markets in China, although Chinese Communist, political rule continued.  Despite the harsh crackdown in Tiananmen Square, China had no choice but to allow some free enterprise, or risk financial stagnation or collapse.  The five-year plans in the former Soviet Union and China, which were entirely government controlled, were not growing their economies as hoped or needed.  Fast forward to the present day and China has realized astounding growth over the last number of years, fueled by ever loosening markets.  Some of the wealthiest businessmen on earth, are Chinese and with growing markets, comes greater freedoms.  One must follow the other, if growth is to continue.  Freedom is to prosperity as oxygen is to breathing.  Ingenuity and hard work can only happen in a free society.  There must be rewards for hard work.  Add to the mix the internet and social media and there is no turning back.  With the ten-year change in Communist party leadership, Xi Jinping, the next President of China, has some very tough decisions.  Can the party continue to crack down on dissenters, or must China, at last, overhaul its political system?  How can China allow businessmen to become famously wealthy while not allowing poor farmers to own their farms?  This incongruity can not be sustained and is in fact, bad business. There are still old style Communist Politburo members, but many of the old timers are dying off so there may be an opportunity.  China has done an incredible job of growing the economy while controlling freedoms.  It’s quite remarkable actually but China is at a crossroads.  She has real issues facing her; a slowing economy and a population of 1.3 billion people.  In what direction will Xi Jinping take China and will he be on the correct side of history?

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