Soros Warns Xi Jinping, Will He Resign?
World veteran investor George Soros gave a stern warning to Chinese President Xi Jinping
He said that currently Xi’s position was being threatened due to the COVID-19 pandemic and the property crisis
China is facing an economic crisis
In a recent interview with the Hoover Institution, Soros said that the Omicron variant of COVID-19 “threatened the downfall of Xi Jinping.” The reason is that the virus is no longer under control in China.
“The Chinese vaccine was designed to deal with the (original) variant from Wuhan, but the world is now struggling with another variant,” said the Jewish investor.
“Xi Jinping could not admit this while waiting to be appointed to a third term and hid it as a guilty secret from the Chinese people.”
In addition, Soros also stressed that China is facing an economic crisis, which focuses on its real estate market. The real estate industry itself is one of the engines of Bamboo Curtain’s economic growth and the real estate crisis is catastrophic for the country.
“People who buy houses have to pay for them before they are built, so the system is based on loans. Local governments get most of their income from selling land at increasingly higher prices,” says Soros.
Furthermore, Soros also reiterated that Xi’s only available action was to enforce China’s “zero COVID” policy. The move allows a region that has recorded just one case of infection to go into a massive lockdown.
This step has also met with a lot of criticism in this model because of its far-reaching economic consequences at home and abroad. He also revealed that Xi had enemies in Home Xi.
International Monetary Fund (IMF) Forecast
Previously, the International Monetary Fund (IMF) lowered its forecast for global growth in 2022. This is due to the increase in COVID-19 infections in various regions of the world, supply chain disruptions, and higher inflation hampering economic recovery.
In its World Economic Outlook report published Tuesday (25/1/2022), the IMF forecasts global gross domestic product to weaken from 5.9% in 2021 to 4.4% in 2022. This is half a percentage point lower than the previous forecast.
The revisions were led by lower growth in the world’s two largest economies. Namely the United States (US) and China.
The US is forecast to grow 4.0% in 2022, 1.2 percentage points lower than previously forecast. One of them was triggered by the actions of the Federal Reserve (The Fed) which withdrew its monetary stimulus even when supply chain disruptions weighed on the economy.
China is forecast to grow 4.8% this year, down 0.8 percentage points from the previous forecast. The decline was triggered by the increase in COVID cases, the zero-COVID policy, as well as financial problems among property developers.
CHINA 50 – Technical Analysis
CHINA 50 is still in a bearish trend. Currently, CHINA 50 rejected a strong support area at $14570 and retested $15.000 levels. If CHINA 50 couldn’t break this key level area and creating new bullish market structure, then it can go down to its next support at $12680.
WHAT ZFX THINKS…
Fundamentally, China still facing an economic crisis and technically, China 50 market structure is still in a bearish trend. The market keeps creating new lower highs and new lower lows. We can expect new lower high and lower low created in the next few weeks.
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