{"id":8112,"date":"2021-07-28T15:39:05","date_gmt":"2021-07-28T13:39:05","guid":{"rendered":"https:\/\/clusterfamilyoffice.com\/?p=8112"},"modified":"2021-07-28T15:39:05","modified_gmt":"2021-07-28T13:39:05","slug":"gambito-de-dama-en-china","status":"publish","type":"post","link":"https:\/\/clusterfamilyoffice.com\/en\/gambito-de-dama-en-china\/","title":{"rendered":"Chinese Queen's Gambit"},"content":{"rendered":"

After listening to and reading many Western and Eastern analyses of the Chinese government's move in its financial markets, and largely agreeing with the analysis of\u00a0Gavekal<\/a>, What is clear to us is that these are decisions that will benefit China's interests in the medium and long term, entrenching its imminent global dominance. As with gambits in chess, which sacrifice a pawn or other piece at the outset to gain an advantage later, Xi Jinping's government is sacrificing certain sectors and the size of certain companies in a surgical manner, although the collateral effects of such policy decisions may be noticeable in the short term, and especially amplified in the Western media.<\/p>\n

.<\/span><\/p>\n

The exact reasons why Xi has targeted sectors such as technology, online education and the financing of Chinese companies in the US market are known only to his closest and most loyal political circle. But we will now explain 7 reasons that could well be behind the Beijing government's moves.<\/p>\n

    \n
  1. An exhibition of power, a warning to all, anyone who moves will not be in the photo, a punch on the table or whatever we want to call it. In short, the government is marking its territory with these actions, demonstrating that Xi's pulse is not trembling to lead the flock towards more and better pastures for the common good (of the party and the state). Growth and global economic dominance, yes, but without the government letting go of the reins at all. An empirical demonstration that Capital will not weaken the foundations of the party.<\/li>\n
  2. Pre-emptive action in the face of escalating US measures against China. What better strategy than to sacrifice in advance companies dependent on US financing, thus discouraging the potential pressure that Washington could exert on Beijing if it threatened to turn off the tap on Wall Street. China will now be less dependent on US investment, knowing that investment in Chinese companies today already comes from many other countries that are increasingly allied with and dependent on China. There is life (investors) beyond Wall Street, and more and more of it every day.<\/li>\n
  3. As for the online education sector, which has been hammered in the markets by measures that would force its companies to become non-profit entities, they seem to be the scapegoats for the extraordinary rise in the cost of education in China. And private education, as widespread as online education can be, could easily escape government control and supervision. In other words, the move will lead to cheaper education (even at the risk of temporarily less access to education as a whole) and greater control, not only of educational content and systems but also of the shareholders in this sector of business.<\/li>\n
  4. Another sector crunched by the government's measures is the food and home delivery business. But despite the bombastic headlines warning of the sector's collapse, the measures taken by Xi's government seem entirely reasonable. The main measure he has ordered is none other than the obligation for the wage and working conditions of the riders or delivery drivers to be equal to those of any other wage-earner who reaches the legally established minimum. This is clearly also in the medium and long term interests of the Chinese economy.<\/li>\n
  5. \"\"Back to industry: The measures that are shrinking the size and influence of some technology and internet-related companies can be read as a return to industry. But that would probably be too simplistic a reading because China is not going to give up on technology companies that lead to progress in R&D - quite the contrary. What seems to be targeted are technology companies that only cater to sterile leisure, i.e. video games and social networks, for example. In other words, companies that encourage distraction and the dedication of hours by users to non-productive activities. That is nothing.<\/li>\n
  6. Derived from this concept of back to industry (& back to R+D) we can also sense an intention that reminds us of the Manhattan Project. In other words, China wants its technological talents to focus on research and development of new technologies, such as semiconductors, in order to alleviate the current and future shortages that we are going to have all over the world. They encourage the potential for technological growth to go in the strategic direction that suits China's future, rather than in other directions that would only distract the population from the collective productive objective<\/a> that Xi has designed and that is leading China to global economic leadership.<\/li>\n
  7. Because at the moment China can not only afford to see outflows of foreign investment, but this outflow is also a perfect escape valve for the unwanted appreciation of the Renminbi (RMB). Let us not forget that China has a trade surplus of $50 billion per month and that its currency also supports flows of another $20 billion in the purchase of Chinese debt by investors from all over the world. And that puts upward pressure on the RMB that is difficult to manage. These controlled, surgically designed investment outflows therefore make perfect sense from the point of view of China's strategic interests.<\/li>\n<\/ol>\n

    Some will probably say that the radical movements in share prices in some cases, such as Tencent or BABA, generated by politburo decisions, are madness and undermine the confidence of international investors. Others will say that it is Xi Jinping himself who has gone mad, damaging his own companies and sectors, in a fit of anti-capitalist communism in the purest podemite style. But even if that were the case, let us not forget that in the West we are not very sane either<\/a>, With the hangover from Hurricane Trump and central banks keeping more and more zombies (companies and states) too big to fail. But nothing could be further from the truth. Xi's modern China does not miss a beat, and always governs with horizons that go far beyond a measly Western democratic legislature.<\/p>","protected":false},"excerpt":{"rendered":"

    Tras escuchar y leer muchos an\u00e1lisis occidentales y orientales sobre la jugada que est\u00e1 realizando el gobierno chino en sus mercados financieros, y coincidiendo en gran parte con el an\u00e1lisis de\u00a0Gavekal, lo que nos resulta evidente es que se trata de decisiones que van a beneficiar a los intereses de China a medio y largo […]<\/p>\n","protected":false},"author":6,"featured_media":8117,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,45,42,40,20],"tags":[],"class_list":["post-8112","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-actualidad","category-asesoramiento-deportistas-artistas","category-estrategia","category-gestion-financiera","category-sin-categorizar"],"_links":{"self":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/8112","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/comments?post=8112"}],"version-history":[{"count":0,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/posts\/8112\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/media\/8117"}],"wp:attachment":[{"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/media?parent=8112"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/categories?post=8112"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clusterfamilyoffice.com\/en\/wp-json\/wp\/v2\/tags?post=8112"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}