Deep Economic Plunge in China

The Chinese stock market in Shanghai has fallen steeply over the last weeks. The shares have been over priced and many people have lost money now.

I do not want to gloat, but I still feel it might be beneficial in some ways that the Chinese economy takes a blow. China has an agressive foreign policy in the seas where it borders Japan and other countries. If there are economic troubles at home, perhaps the Chinese government turns its attention to domestic problems. This would make the tension of the South China Sea to ease. It would be beneficial to everyone, the Chinese as well as the inhabitants of the neighbouring countries.

I hope this will be the result, but I cannot be sure. Auntie Linni points out that domestic problems sometimes cause governments to give more attention to foreign aggressions, to make the people divert its attention from the domestic problems. She is right, of course, but I hope this will not be the case here. The South China Sea does not need more international tension. We will have to see what happens.