Displaying items by tag: xi

(Washington)

The market has been worried about trade for almost half a year now, ever since the rhetoric surrounding it began heating up in June. It has been a major factor in several volatility events in stocks, including in October’s big selloffs. However, a meeting this weekend has the potential to put those worries to rest. Alongside the G20 summit this weekend, Trump and Xi will meet for dinner to discuss the trade tensions between their countries.

FINSUM: Trump and Xi seem like two men that get along well personally, but have an immense amount of competing interests that they need to represent. That said, we have faith that good personal relationships can help bridge such differences. (e.g. see the Cold War)

(Beijing)

Something monumental, and very troubling, happened in China his week. The central committee there recommended scrapping the two-term limit for leaders, meaning Xi Jinping will stay in power indefinitely. This has “has put us back 30 years”, said one Chinese commentator close to the situation. One Australian academic comments that “We’ve had so many steps backwards [under Xi] … Media controls have become stricter, internet controls have become stricter. And now one of the few seemingly effective checks on a senior leader’s power — that he can only be in power for two terms — is now just being completely cast aside”.

FINSUM: Even for a country with no elections this seems quite authoritarian. We don’t suspect any immediate fallout, but this could be a slow-building drama.