What We Know About China's Socioeconomic Overhaul

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Nov. 15 (Bloomberg) -- Bloomberg Contributing Editor Richard Falkenrath and Economic Editor Michael McKee examine economic and social reforms announced by the Chinese government. They speak on Bloomberg Television’s “Bloomberg Surveillance.”

This headline for me.

I believe this is a holdover from mao.

It is.

It is the way they have dealt with political dissidents.

Putting people in jail, right?

And then they have been taking enormous correctional systems.

What this is a sign of is the new chinese president xi jinping appreciates the internal problems and is moving more quickly than chinese watchers had expected.

A new premier, when they came into power, would take a little bit longer.

That would take a year or two to build consensus.

He is acting more quickly.

At the same time we have learned from bloomberg news that the party cannot implement the -- the party plans to implement the reforms by 2020. we don't do that anymore.

We cannot even plan the defense budget from a folk -- a few months.

You have your member, it is not the government that runs the country, it is the communist party.

Each cell in the commonest party, as you go up the ladder from the localities, has its own fire it is great it is not as easy to command and control from the top to the very bottom.

The chinese have had a real problem with cities and towns going their own way.

Overhanging this, richard you are so good at this, is the chinese military and their new projection.

How much do we know about china's military will he see these headlines?

They have a comprehensive military modernization program that they were starting at a museum relic level.

What they were doing in the last decade was a very significant investment in high-tech what they do not have the capacity to project very bond -- very far beyond their shores.

Very quickly, guys like you guess wrong on the soviet sophistication in 1989. we thought they where a lot fancier than they were.

And the larger problem we did not think that the internal problems and contradictions were as severe.

They did have a lot of military capabilities.

Some of it still operates and some of it with nuclear weapons pointed directly at the heartland.

The key question is how are they doing as a society e howard holding together?

Where is hot -- as a society?

Are they holding together?

Where is china?

They have some risk.

A quick data check on a friday.

S&p, 1800 insight.

This text has been automatically generated. It may not be 100% accurate.

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