There’s nothing quite like a Soviet-era display of military might to get the patriotism pumping.
All that hardware, missiles gleaming in the late summer sun and seemingly endless lines of infantry, devoid of any semblance of humanity as they mindlessly goosestep their way through the square.
It takes you right back to the 70s and, for those who watch SBS on a weekend, vaguely reminiscent of those turbulent years last century when a twisted maniac with a fondness for amphetamines began his murderous reign over much of the world.
Flanked by his allies from Russia and North Korea, China‘s President Xi Jinping delivered an ultimatum to an unnamed nemesis.
There was a choice, he declared.
“Today, humanity is again faced with the choice of peace or war, dialogue or confrontation, win-win or zero-sum.”
Choreographed down to every minor detail, the parade was starkly at odds with the ramshackle performance by US troops across the country in June.
Some observers maintain China’s military parade, ostensibly to celebrate the victory over Japanese forces in World War II, was starkly at odds with Donald Trump’s birthday festivity parade, the first in Washington in 35 years.
China unveils new weapons
Formations of warplanes and helicopters flew above Beijing’s Tiananmen Square as China unveiled a new “triad” of nuclear missiles, drones and lasers at the country’s largest ever military parade.
China’s display of military might was targeting a global audience, they say. America’s was primarily for domestic theater.
That’s not entirely true. The pageantry and power were as much a neat domestic distraction as a statement to the world.
five years into a property market slump, China’s economy continues to struggle. Plagued with rising unemployment and sluggish
China’s deflationary woes are spreading across Asia
China’s housing prices have been declining since 2021. That’s left legions of investors facing heavy losses and home owners, who stumped up deposits, without a home and out of pocket. for those who have maintained a roof over their heads,many owe more than their property is worth,giving them even more incentive to save rather than spend.
Just as the US is facing a potential renewed bout of inflation – with American consumer prices rising and well outside the US Federal Reserve’s 2 per cent target – China’s consumer prices are in reverse.
They’re not simply slowing. Prices are going backwards.
Deflation can be every bit as crippling as inflation. It crimps consumption, especially on big-ticket non-essentials, and kills investment. Why pay for something now when you can get it cheaper in the future?
China’s main problem is over-capacity. Its economy is running well behind its output capacity. That puts pressure on manufacturers and producers to cut prices.
In years past, China could simply lift its exports and shift goods elsewhere. But that’s become increasingly difficult and,with Donald Trump’s tariffs starting to bite,rerouting exports comes at a cost,given most countries already source much of their manufactured goods from China.
Increasing volume to saturated markets results in lower prices,squeezed margins and lower profits.
Just as it did around the turn of the century, China is now beginning to export lower inflation. Its regional trading neighbours already are feeling the effects.
Thailand is experiencing deflation, the Philippines is not far off and even India’s consumer prices have slowed to just 1.6 per cent per annum.
Wages and jobs in decline
It’s not just the price of goods in retreat.
Wages, too, are under pressure across the region, forcing more people back into the workforce. There are record participation rates in India, Indonesia and Malaysia, along with a surge in the Philippines.