After years of authoritarian control from Moscow, the Soviet Union gave way to outward force and exploded. The biggest top of all is China, and its spin is prone to a frightening wobble. Spin doctor and Premier Zhu Rongji wants more power for the centre. At the same time, localities seem to be getting more power. After a while the wobble develops and the central leadership's influence wanes.
Inequalities become rampant as local powers gain the upper hand and assert their own interests.
Out of this tension emerges a new, strong leader. In simplistic terms, one could say that Mao Zedong centralized, Deng Xiaoping decentralized and Zhu is recentralizing. This framework may be helpful in making sense of a whole raft of recent policies. Beijing has tightened credit supervision. The People's Bank of China now runs nine affiliates along the lines of the U.S. Federal Reserve System, ensuring that local banks no longer bankroll local governments.