From The Dallas Morning News:
China’s rulers have gained public support since the beginning of the 1990s with policies that raised annual per capita income (measured as purchasing power) from $1,500 to $5,300. But labor leaders say the latest reforms will turn worker unrest into the greatest challenge facing the Chinese Communist Party.
Creating jobs has been the party’s most urgent task throughout the market-opening era. The government keeps China’s currency linked to the value of the dollar to keep its exports at low prices for U.S. consumers – and to keep creating jobs at Chinese factories. The government is moving to clean up the balance sheets of state-owned banks and to raise interest rates for real estate loans, but it is moving slowly so it won’t choke off construction employment.
Thanks, Yong Liu!