Chixian Shenzhou - The Sacred Earth and Divine Land
Chixian Shenzhou sometimes used in times past to describe China is a part of the long and fascinating cultural history of this great country. Over many centuries China mastered the art of administration and regional government through a vast and sophisticated civil service. As early as the Zhou dynasty (1100 − 211 BC) a developed bureaucracy was formed with rigorous examinations required to gain entry to the administrative elite, second only to the royal and warrior classes in Chinese society.25 July 2013
It is no surprise then to see the Chinese administration acting to address emerging concerns over the durability of economic success.
Not this time the shock and awe tactics of 2008 when massive stimulus was pumped into the economy, but more targeted measures designed to foster private enterprise, stimulate consumer demand and begin to roll back the place of the State in the economy.
Past abuses of the system and the determination of the new regime to tackle them are embodied in the trial of Bo Xilai, the former party boss of Chongqing who faces charges of corruption and abuse of power following the arrest of his wife on suspected murder charges.
China's economy has been slowing from double digit growth to around 7.5%; the more modest stimulus package just announced is designed to hold that growth rate and to encourage consumer demand with less State backed capital investment programmes in property where inflationary bubbles could be building.
The package includes tax reductions aimed at 6m small business owners, reduced red tape around exports, and more private financing in railroad development.
Li Keqiang the premier made it clear he is targeting a 7.5% sustainable growth rate, in the same week that President Xi announced a halt to construction on new 'trophy' government buildings.
In the face of a slowdown the mighty Chinese administration has swung into action introducing measures to reset the economy on a sustainable growth path. My bet is they will be successful and coupled with the strengthening recovery in the US, talk is now moving to when the automatic circuit breaker of rising interest rates might be applied.
'Be not afraid of growing slowly, be afraid only of standing still'. (Ancient Chinese Proverb)