China, surviving communism?
In international news, the Chinese Premier, Li Keqiang, has acknowledged the country’s economic slowdown and the difficulties they are facing. In a news conference Keqiang revealed that the best option in dealing with the slowdown would be in cutting corporate taxes and deregulation. This would be a change from the crippling approach used during economic downturns of printing money and increasing government spending. However, recently released economic data revealed that the government is turning to monetary expansion to create steady growth. He also said that the government would demand that the state-owned banking sector and the country’s many state-owned enterprises turn over a greater share of their profits to Beijing. That could be very difficult politically to accomplish because the Communist Party relies on state-owned and state-controlled banks and companies to maintain its political control, cushion the effects of economic downturn in struggling regions, and provide jobs to millions of people.