Hong Kong is presently experiencing a political crisis. Large scale use of law enforcement and military is being used to disperse the protesters. However, the system itself is failing and it will lead to additional protests. Historically, an achievement of the Freudo-Marxists was the quantum leap through the rationalistic outlook which had dominated in the Marxist tradition. Furthermore, the escalation of the crisis in Hong Kong is inevitable due to the bygone times and political reality of the Chinese territory.
If a manufacturing firm has a goal to sell products in both the US and China, locating the production in China gave them an unfair economic advantage. China imposes very heavy tariffs and regulations on almost all imported goods, making access to China’s market far more costly for the production of manufactured goods outside of the country.
- In China, weak economic data has been coming in thick and fast. The country’s statistics bureau announced that retail sales in November grew at their slowest pace in 15 years, with car sales on course for their first annual decline in nearly three decades. Industrial output was also weaker than anticipated, growing at its slowest pace in nearly three years.
- China’s economy has slowed sharply in recent months, presenting the biggest challenge to its top leader, Xi Jinping, in his six years of rule. He faces difficult choices that could rekindle growth but add to the country’s long-term problems, like its heavy debt. On the world stage, he has been forced to make concessions to the United States as President Trump’s trade war intensifies.
- The Federal Open Market Committee is expected to raise its short-term interest rate — a benchmark for many consumer and business loans — by a modest quarter-point to a range of 2.25% to 2.5% after a meeting on Wednesday. This would be its ninth hike since late 2015. The central bank forecasts three more rate hikes in 2019, but softer global growth could cause a shift in its hawkish stance, as China announced that its industrial output and retail sales had slowed in November.
- With economic growth at its weakest since the global financial crisis, Chinese policymakers are ramping up spending, pushing banks to increase lending and cutting taxes to shore up businesses and ward off a more damaging slump. November industrial output and retail sales growth numbers showed that downward pressure on the economy is increasing.
- Xi wants to see the trade war resolved sooner rather than later given the disproportionate effect of trade on the Chinese economy when compared to that of the United States. China’s exports to America amounts to a larger segment of the Chinese economy than the amount to which China-bound U.S. exports represent to the U.S. economy. Last year China exported $500 billion worth of goods to America out of a total Chinese economy of $12 trillion. The U.S. exported $130 billion goods to China out of its GDP of $19 trillion .
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