Chinese Wealth Giant Crumbles: ZEG's Insolvency Shakes Shadow Banking

China is learning what it means to be part of the global community. Its growth since it first opened its doors to foreign investment in 1979, leading to joining the WTO in 2001 has been phenomenal and commendable, lifting half of its population from dire poverty. Rather than strengthening the communist party though, it weakened it, exemplified by economic leaders overtly questioning party decisions, something dictatorships don't tolerate.
Yet, westerners need to be careful what they wish for. Chinese wealth creation that not only benefited Chinese but also western enterprises is one thing, but human evolution is another. Under the cloak of imperial then communist control is a massive population that for centuries learned to survive with little. Poverty breeds ruthlessness where everyone tries to get away with everything. Imagine the early day of European industrialization or western absorption of the Americas, the sort of unhindered capitalism that thankfully we have tamed in modern nations. Many in China continue to operate that way, copying, stealing and siphoning for self interest, massive corruption in government and private sector for which the only safeguard is communist party violent retribution when caught. Remove harsh government retribution and we may face far worse consequences.
In effect, a Chinese transition to a multi party democratic system is unfathomable because it has never existed. Taiwan is the only model of a Chinese dominant population that meets democratic norms, yet is known for violent outbursts in their parliament.
Norms and values are a very slow evolutionary process that all nations struggle with.
Capitalism and entrepreneurship are in their blood. No matter the regeme, the people will always find a way to thrive and make money.

Imperialism and dictatorship on the other hand are in their culture and difficult to change. After 5000 years of dynastic rules, it is impossible to adopt democratic rules in one generation. After all it took the west centuries to evolve and perhaps will take centuries for China too.

Bottom line, don't expect quick political change but don't under estimate their survival power if under attack.
 
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