Chinese Economist Wu Xiaobo's Eight Predictions for 2018

Five economic trends emerged in China in 2017:

1. The middle class is becoming mainstream – 240 million Chinese now make up the country’s middle class, making it the main force behind China’s consumer economy. Discerning shoppers from this sector now eschew long-established brands and prefer companies who can deliver artisanal and aesthetically pleasing products.
2. International acquisitions are growing exponentially – In 2017, China was the country with the greatest volume of mergers and acquisitions. After China’s acquisitions of German private enterprises had increased eight-fold in 2016, the German federal government passed laws to keep non-EU takeovers in check. China was clearly the target of that legislation.
3. Growing financial unease – Lucrative investment opportunities in the public market are waning. In 2017 the number of IPOs increased, but speculative stocks imploded. One investment company on the National Equities Exchange famously reached a valuation of ¥130 billion ($20.2 billion). It then lost 98%-99% of its value almost overnight, which resulted in its delisting. With controls from China’s ...