RE: Updated ...........16 Aug 2023 22:46
Evi,
The whole Chinese economic model seems to have run out of road. They have been too reliant on exporting and housing and infrastructure construction, whilst neglecting to build consumer services spending in a population that has a higher propensity to save than Western economies.
Now exporting is being challenged by near / friend shoring encouraged by Xi's sabre-rattling and cheaper labour in Vietnam and India; too much poor quality housing and infrastructure has been built on credit and money supply is now tightening. And to make matters worse, just when a boost to consumer spending is desperately needed people are feeling poorer thanks to falling property values [the main store of personal wealth in China], failing Investment Trust companies and rising unemployment.
And then the floods came and the CCP, mindful of the "Mandate of Heaven", tried to cover everything up.