Consensus-driven leadership in pre-Xi China created investor confidence that certain outcomes (like property market collapse) were unlikely because actors had veto power over decisions.

causalpending

Speaker

Logan Wright

Evidence Quote

people did not think that financial risks were likely within the Chinese system because basically the government didn't want political instability. So, local governments, if you thought that the this was very common in the 2010s, you would hear the property market cannot collapse in China because local governments depend on it.

Source

The cause and effects of China’s slow-motion crashReuters
Created: 8/12/2026, 6:32:13 PM

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