The devaluation Chinese symbol of the weakness of political power

Impairments Chinese are the care of a malaise that threatens to spread and break the fragile world economic. Beijing, in the rush to keep up the rate of development has failed to implement the reforms necessary to create domestic demand, which would have enormous potential, but that, with the current conditions, is not in degrees to balance the decrease in exports. From the standpoint of economic growth for the current year, estimated at 7%, it was not already considered a result able to support the Chinese economy, but the new data, which indicate the possible and significant decreases, enable one scenery pejorative. The depreciation of the Chinese currency is used to make cheaper goods Beijing on foreign markets, which, however, suffer a reduction in purchases generalized, which can not be overcome with a simple devaluation. For China it means jeopardizing the investments necessary to tackle major projects and was in danger of the knot of local authority, on which there are no official figures, but that is suspected, whether an entity such as to danger in the Chinese financial system, despite the large cash available. The perception is that China's rulers have realized late difficulties of the country and have responded with an action imposed from above, that has little to do with the exercise of market laws, as they wanted to make believe until Now. Perhaps the problem is that they have understood in a too liberal and open-minded use of financial instruments, without creating the appropriate conditions for the necessary and much-vaunted domestic demand. Too much economic inequality, widespread corruption and the power of peripheral devices, often exercised in a despotic, are creating increasingly broadly to a social distress, manifested by strikes and unrest, going to endanger the balance of the country. If the industrialization of China had promised the spread of wealth in return for political continuity of the single party, which has never been permitted deviations, the results, which have concentrated wealth in the hands of a few, they have dismissed these hopes creating discontent and stimulating social demands to which the Communist Party fails to respond. The creation of domestic demand should satisfy both the need for economic and social ones enable the country to continue on the path of being a truly great power. This objective seems to recede with the devaluation, because technically extends the gap between rich and poor classes, which are seen decreasing purchasing power and therefore have even less ability to support domestic demand. The Chinese government is trying to rebalance its deficiencies by offering its goods at lower prices in a world situation where the drop in consumption appears a phenomenon, currently difficult to reverse, as evidenced by the data on the slowdown in global trade. The Chinese situation is not, however, a consolation for the competitors in Beijing, in fact, both the US and the European Union fear that the Chinese problems may arise contagion, capable of investing their economies already in crisis. The general problem, which has to be understood, is that this economic crisis can not be solved only by means of finance, but needs social welfare measures now essential and this is true for China, which for the United States and for ' Europe. The need for greater and more equitable income distribution appears the best antidote to take the economic growth by promoting their internal demands, which came to a considerable degree may be able to trigger virtuous cycles on a wider scale. If this is true of all the major economic players in the world it is even more necessary for the country of China, which also has a need for greater dissemination of political, civil and labor. Economic success can not be chased from the approach which led the Chinese Communist Party, just because the devaluation of these days shows that it is a path that no longer guarantees success. If these considerations are true, however, China seems stuck in a dead end, because it seems that its leaders do not have the elasticity and the ability to face a challenge far more large that the spread of the market economy in an authoritarian because that's the crux of the matter. Without solving the problem of the spread of the rights we will see temporary solutions, which can not always ensure success, however temporary.