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I read quite some time ago that China’s economic miracle had created a middle class numbering in excess of 200 million.I lived in China for five years previously and returned to Australia a couple of years ago. I can tell you with 95% certainty after many conversations with friends living over there that over the last week, the reason the markets are not reacting well is that many in China thought that the zero-Covid policy will be overturned so Xi Jinping can win favour amongst those local municipalities like Shanghai who have suffered more with the draconian measures there not so long ago. Many were wrong and Xi has bigger balls than most expected. He also disgraced ex-President Hu Jintao who opened up China between 2004-15 by escorting him out of the very scripted conference.
History doesn't repeat and often rhymes, and I do think the now majority middle-class will not accept China closing itself after nearly 30 years of opening up and tolerance will only go so far.
Modern China (The PRC) run by the CCP has not even been around for 80 years and looking back at rich and damned interesting Chinese history, revolution will certainly not be dismissed.
To relate to Brainchip, like FF said, lucky we have our literal and figurative chips in the US.
But for the markets in general, the macro environment will not give one bullish sign this year. I was hoping the China situation could have been it.
Many of the ruling CCP have learned to live with middle to upper middle class opportunity.
Both groups have come to expect that their children will have at least the same opportunity for a similar quality of life.
I have no idea how long it will take for these people to question why this has been taken away from them and for what purpose and why their children now have been denied a similar future.
Eventually something has to give.
You only have to look at the United States to see what happens when a large section of society is denied the future that their parents and grandparents enjoyed.
My opinion only DYOR
FF
AKIDA BALLISTA