The stock markets in China continue to swing wildly as it saw a drop by whopping 30% by early July even when it had climbed to a seven year high just a month before. Ever since this happened, there were rumors that top firms like Morgan Stanley, Goldman Sachs and likewise were mainly to be blamed for this huge plunge. Despite the fact that foreign investors are offered just limited access to the main stock exchanges in China, the country was quick to play the ‘hostile foreign forces’ blame game card.
In the last few years, ‘hostile foreign force’ seems to be the most commonly used blame which China has been using. The Chinese education minister opposed the western concepts and stated that younger teachers and students were the top and easy targets for influencing by the western forces. Further, there were claims of America’s cultural invasion and this has further hampered the relation between the two countries.
There have been plenty of legislative efforts which were taken mainly to curtail the amount of western influence which was occurring on people. Keeping in line with this Chinese policy, the officials are also drafting new rules and legislation so that they can strictly regulate and monitor the foreign based nonprofit organizations which will work in China.
A new cyber security law, which is currently on hold, asked the banking industry to use secure and controllable equipments by Beijing which means that foreign technology firms would have very limited chances of survival.
The Chinese authorities seemed to have failed to understand the situation completely as these policies might offer them short term benefits but they are paving the path for long term troubles as estranged relationships with too many nation might end up becoming a major setback for the country..