China Stress-Tests Global Economy At Moment Of Maximum Anxiety

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After 11-plus years watching Xi Jinping operate, global investors have learned to watch what China's leader actually does, not what he says...

Article originally published by Forbes. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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04 Jan 2024

Consider, for example, how Xi’s team spent the homestretch of 2023 talking big about revitalizing the reform process and championing private-sector innovation. Xi spoke the language of foreign funds keen to ride China’s economic rise. Yet that was before his government’s actions returned knots to all too many investors’ stomachs.

Just 10 days before year end, Beijing rocked markets with draft guidelines intended to limit consumption on online gaming. It was the latest perceived attempt by Chinese policymakers to maintain control of the virtual economy. In doing so, investors came away fearing that Xi and his team learned little from the tech crack crackdowns of recent years.

“The rules looked like a rerun of the regulatory crackdown of 2021, because of their draconian restrictions on the types of spending that drive much gaming revenue and led to a sharp selloff in major gaming companies,” says Andrew