BBC World News Robert Lawrence Kuhn China’s Economy & Politics = _ President Xi’s ‘Four Comprehensives’ : fh _ August 25, 2015 —==. lCU OSC ek eS — J al HOST: Dr. Robert Lawrence Kuhn is an advisor to the - a ‘ A pe, Chinese government and author of How China’s ie \ er 209 ve Leaders Think and he joins me now from Beijing. A q _— 4] — cut in interest rates today - but in China any economic = MA decision is always colored with politics. - == RLK: Certainly people are concerned here, but you BIBI News ae = = have to realize a 43% drop in the Shanghai stock market is still 25% above its 52-week lows, so what the economists, government, tries to do is to distinguish between the so-called real economy and — “arn the stock market. Most people realize China’s stock > - market was overvalued, but perception is reality, and roe ae Cas ee el ae ‘44 if people have less money on paper, they'll spend less, s a HE ER 49 and so the fall will affect the real economy. FY OX DE aX 4 And you're right, the way to look at such situations in “@ China is not just economically - you can’t look at as oi z wi CHINA MARKETS FALL China without looking at politics, and here there are __China cuts interest rates for fifth time since Nov two major areas. One is President Xi Jinping’s state visit to Washington. This has been a very tense time in Sino-US relations: South China Sea, cybersecurity, human rights, lots of issues. But what this economic ; ew ge az . i. . . rm™, ene Pt ' 7, uncertainty and volatility will do - I hope - isto make | § L | Ors T=) " both presidents focus on what really affects human »® § = — : . beings and human lives, focus on economic areas, t S because this is where there can be some commonality { between China and the US. The contentious issues are | § » wonton real, but economics is more real for people. : CHINA MARKETS FALL Domestically in China, it’s really interesting, because China stocks continue to tumble in recent days, there have been editorials in People’s | e