Luxury goods brands such as Louis Vuitton, Remy Martin and Bentley have posted falls both in growth and profits in the recent period, down from record highs. That the sales of luxuries have been booming in a period of global recession for the past few years appears remarkable in itself. This contradictory phenomenon, and its more recent decline, gives an insight into one aspect of the capitalist crisis.

Six months into China’s new Politburo Standing Committee under Xi Jinping’s Presidency, it has become abundantly clear that the next ten years under his rule will not resemble the relative social stability and rapid growth of the past ten years. The cart will not keep on rolling down the same path.  Xi Jinping and the Chinese Communist Party stand at a crossroads, facing that classic dilemma of all ruling classes - either to open up to democratic reform or clamp down on growing dissent?

At the moment, the Chinese capitalist class, on the whole, is happy to go along with the status quo. They see no alternative, and are terrified of lifting the lid on the anger of the working class, therefore they seek stability at all costs.

Xi Jinping, relatively unknown in the West, will be China’s President for the next ten years, that is, if he can keep a lid on the simmering pot of anger that China has become. The new Prime Minister is Li Keqiang, apparently the outgoing President’s favoured successor.

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