The
first, of course, has been the antics of the Shanghai Stock Market which
Beijing has always wanted to portray as a model for its brand of commo-capitalism.
Initially, the Government was about as powerless to stop the massive $3
trillion wipe-out as Canute was with the tides.
Since
then a series of desperate (Beijing would call them innovative) measures have
halted the rout and some gains have been made, but diktats such as suspending
the biggest losing companies and halting public offerings provide only a
breathing space.
Simply,
the Chinese small investors have got to realise that share purchase is not a
gold-plated way of making easy money and what goes up often comes down. That
was the painful lesson of Black Thursday 1929 and it appears it has to be
learnt over again.
The
second problem for Beijing has come in a leaked document which indicates that
up to 600 members of the country’s Uighur Muslim minority have slipped out of China
to join Islamic fundamentalist groups in the Middle East and have probably
undergone terrorist training there.
This
seems to be confirmed by the appearance in an Islamic State (IS) propaganda
video of a Uighur cleric calling on his fellow Muslims to “fight against the
Chinese infidels”.
The
South China Morning Post reported
that the tape also showed a classroom full of Uighur boys wearing IS headbands,
one of whom threatened to return to China and “raise the IS flag in Turkistan”
(this being the name given to the province of Xinjiang where most Uighurs live).
While
no-one should wish IS’s horrific brand of death and destruction to spread,
Beijing has done nothing to come to terms with its Muslim minority, the latest
provocation being attempts to forbid the observance of the holy month of
Ramadan by ordering public servants, teachers and students not to fast during
the day.
In
the past this kind of repression has led to violent protests and deaths, now it
appears some Uighurs are prepared to take up arms in the name of IS’s perverted
brand of Islam.
Compromise
and reconciliation are needed if these problems are not to persist and worsen.
Unfortunately those words do not appear in the lexicon of the Chinese Communist
Party.
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