Angol
This book tells the story of how Chinas leaders, from Mao to Xi, have sacrificed ethics to promote either macroeconomic performance or microeconomic efficiency. This story includes Maos collectivization of land, the Great Leap Forward, the Great Cultural Revolution, Dengs opening China to international trade, Tiananmen Square, the freeing of prices, food and medicine scandals, the 2015 surge and collapse of the Chinese stock market, the falling of Chinas foreign reserves, and so on. In 2008, Chinas leaders correctly identified the best strategy as a "consumption-driven growth strategy" because the current world is suffering from a glut of savings. However, for that strategy to work, the Chinese need to be able to trust Chinas economy and leaders. In the absence of trust, people will make decisions based on extremely short time frames which will hurt Chinas long-run potential and continue to generate a series of speculative bubbles. In the absence of trust, wealthy Chinese will continue to move their assets abroad, putting tremendous downward pressure on the Chinese yuan. The Chinese will develop a long-run perspective and invest in China only when they can trust Chinas future. In todays world, trust is necessary. Trust is built on ethics.
