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the strong bullish case for 2023 – Asia Times

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

The basic premise for this, as we have written and reiterated on several occasions since just before the 20th Congress of the Communist Party of China, is that – contrary to the biased and ill-informed “reporting” of the Western press – the third term will not be characterized by a further tightening of centralized controls on the economy and suppression of private sector initiative by a cohesive group of handpicked Xi supporters, but quite the opposite.

That could and should have been clear to any attentive observer the moment Shanghai party chief Li Qiang emerged in the number two position behind Xi in the presentation of the new Politburo Standing Committee following the conclusion of the party congress. .

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