China is beginning to crack down on tax avoidance with some high-profile, well publicised, targets. This is designed to bring the masses into compliance with the tax code.
If it works, it is the beginning of the end. There will be an immediate boost to government revenue, followed by a sharp decline next year. It is the wrong time (is there a right time?) to increase the burden on already struggling businesses. They must know this, therefore one can assume that the government’s need for money right now is urgent.
Emperor Xi is in deep trouble and, like other emperors, he will inflict misery on the Chinese people to pay for his errors. Think Maduro’s Venezuela, only much, much worse.
Socialism’s one hundred percent record of bringing death, starvation and misery is about to play out once again.
A war over the South China Sea colonies would deflect a lot of attention from the real problem.
“The economy is struggling because of imperialist warmongering.”
Short the Yuan and Aussi Dollar; go long the US armament industry.
I note that there is not much talk about a Gold-backed Yuan anymore.