Kindergarten problems, amazingly, have more than anything dominated China news in the past week or so. The details can be found elsewhere. The point is the growing sense among middle class people of a lack of reliable information and recourse on issues of core importance to them, such as the safety of their kids. It breeds cynicism, which is corrosive. It will blow over, at least superficially. But it was a reminder of the way things are.
North Korea also made things more tricky for Those in Command by testing a new missile with the range, apparently, to hit the continental USA. The question is whether there is any agreement between the US and China as to what happens in certain circumstances, in terms of the really core way of putting pressure on Pyongyang, which is Chinese economic support. Oil and finance, basic things like that. Our view remains that we are not heading for a new Korean War.
Meanwhile, the economy remains in pretty good shape, as far as one can tell. It’s also changing fast and models are falling and being replaced at great speed.
Dynamic situations all round. Even more so since the Congress, it seems.
Enjoy the weekend!