Coronavirus is rattling China’s Political and Economic System at the worst possible time.
Although still growing at slightly over 6% (this quarter’s numbers notwithstanding), the country’s economy is expanding at its slowest rate since 1990. And this trend started long before anyone heard the word coronavirus.
Now, with factories across the country slow to re-open, or operate anywhere close to maximum capacity, all eyes in China and around the world are focusing on Chinese President Xi Jinping and his brethren in Beijing.
This is a major problem for a country with one political party and little individual freedom. One whose legitimacy is solely based on the ability to “outperform the global market”.
Without a formal mechanism for redress, chaos can ensue
Populations around the world have proven willing to sacrifice certain democratic rights for better livelihoods. However, as we have seen recently throughout Latin America and the Middle East, when the government fails to uphold its side of this social contract, citizens demand transparency and accountability.
In need of a saviour, crypto and blockchain may provide the catalyst and relief valve that China needs.