- January 30, 2022
- Posted by: Stratford Team
- Category: Economy
An abrupt about-face by President Xi Jinping suggests China is in crisis mode as rising interest rates pose a grave threat to its economy.
In the years leading up to the pandemic, Chinese President Xi Jinping warned that the global economy faced challenges and that a Black Swan event was a serious risk for the Chinese economy and the world.
Since the pandemic began, the People’s Bank of China, financial regulators and the senior Chinese Communist Party leadership have further intensified their calls for systemic risk to be addressed, with growing concerns about the course of global financial markets being expressed last year.
But in recent months the mood has changed significantly.
President Xi’s U-turn
In a virtual address to the World Economic Forum Davos Agenda summit in mid-January, President Xi had a very clear message for the US Federal Reserve and its Chairman, Jerome Powell: please don’t raise interest rates.
“If major economies slam on the…
