China's response on dual circulation economy

In unpacking the suite of policy changes in China over recent weeks, we have considered the restructuring of the education system and the wresting of control of big data away from commercial operators. Both of these policy actions are related to the idea of common prosperity and the idea of sovereignty. These policy changes all relate to the access to capital for economic growth. 

We pick up from where we left off last week.

For many Western countries, Covid revealed the vulnerability of supply chains. It came as a shock and it led to an almost instant cry for diversification to reduce reliance on a single supply chain. It should come as no surprise that China reached the same conclusions. This was driven by Covid, but also by the increasing range of trade sanctions applied under the mafia capitalism model deployed by President Donald Trump. Rather than outcompete, Trump favoured putting people out of business. It had much in common with a mafia protection racket.