The Party’s new alchemy

There is nothing wrong with China's growth model, said the Commerce Ministry. CXMT was proof of it, said its admirers. But is that really the story?

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In today’s deep dive, we look at two stories from the past week that make sense when stood next to each other. First, the Commerce Ministry’s retort to foreign criticism of its industrial overcapacity this week was oddly feeble for a state this capable. The reason it could not do better relates to the second story: why Hefei’s CXMT, a memory chipmaker, is being lauded across China as the answer to local government’s fiscal woes. The link? These are both actors playing different roles in a sin…