Xi Jinping’s consolidation of power reflects growing anxiety within China’s political and economic system.
Facing structural reform delays, real estate overhang, and stalled yuan internationalization, China seeks external opportunities through the AIIB and Belt and Road Initiative.
This analysis examines the tensions between authoritarian rule and economic realities shaping China’s future.

The concentration of power by Xi Jinping, as demonstrated at the Communist Party Congress in October, is a reflection of China’s anxiety.
2018-01-12.
The following is a continuation of the previous chapter.
To begin with, 95 percent of logistics across the Eurasian continent is transported by sea.
Eventually, Asia and Europe will be connected via Arctic sea routes, making the failure of costly rail transport inevitable.
It would be wise to avoid involvement in the Belt and Road Initiative as much as possible.
The concentration of power by Xi Jinping, as demonstrated at the Communist Party Congress in October, is a reflection of China’s anxiety.
At present, the Chinese economy is suffering from three major difficulties.
Structural reforms needed to transition to stable growth, including the privatization of state-owned enterprises, are stalled, the aftermath of massive real estate investment following the Lehman Shock remains unresolved, and the internationalization of the renminbi has not progressed.
Because the domestic economy is not performing well, China is seeking opportunities abroad through the AIIB and the Belt and Road Initiative.
There are three important perspectives when observing China.
First, China is a dictatorship ruled by the Communist Party.
Second, Chinese people are extreme individualists.
Third, Chinese people lack a sense of nationhood.
Viewed from these three perspectives, it becomes clear that Communist Party dictatorship will collapse along with economic decline.
At present, a gap has emerged between the dictatorship the Communist Party seeks to preserve and the free economic activity the people desire.
Because Chinese people are individualistic and lack a strong sense of nationhood, they had little concern whether under Communist rule or warlord fragmentation as long as they could profit, but now it is becoming increasingly difficult to do so.
If one thinks of China as a single unified nation, one will misjudge it.
At this point, the only thing supporting the legitimacy of the Communist Party is the economy.
If that economy declines, there will be virtually no citizens who pledge loyalty to the Communist Party.
To be continued.