the strong bullish case for 2023 – Asia Times

HONG KONG – Several global investment houses have recently upgraded their 2023 growth forecasts for China from the 4% range to well above 5%. We believe that’s too conservative. An “explosive growth spurt” (in the words of a most experienced Hong Kong-based China investor) in the 7-8% range is highly likely as the current Covid wave recedes.

The basic premise for this, as we have written and reiterated on several occasions since just prior to the Chinese Communist Party’s 20th Congress, is that – contrary to the biased and ill-informed “reporting” of the Western press – General Secretary Xi Jinping’s third term will not be characterized by further tightening of centralized controls of the economy and suppression of private-sector initiative by a tight-knit group of handpicked Xi loyalists, but rather by the very opposite.

This could and should have become clear to any unblinking observer the moment Shanghai party chief Li Qiang walked out in the number two position behind Xi at the introduction of the new Politburo Standing Committee upon the conclusion of the party congress.

Li, whose political career started in Wenzhou, a proud bastion of free enterprise in Zhejiang province, opened the new STAR market of the Shanghai Stock Exchange and helped Elon Musk build the Tesla Gigafactory in Shanghai in record time during his Shanghai tenure, to mention just two of his hallmark initiatives.

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