Patrick Boyle On Finance In China - Don't Say Deflation
Aug 29, 2023
China's struggling economy and the government's efforts to suppress negative discussions. Challenges faced by Zhongji and the economic situation in China. High unemployment rate among Chinese university graduates and the oversupply of college graduates. Shift in pricing strategy by Chinese retailers and the impact of digital currency. The need for China to rebalance its economy and control its debt, with potential global implications.
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China's Economic Suppression
- China's economy struggles to recover from an economic shutdown.
- Authorities suppress negative economic discussions, especially about deflation.
China's Education-Job Mismatch
- Higher education in China expanded faster than job market demand.
- This results in high youth unemployment and underemployment among graduates.
Real Estate Dominates China
- Real estate is crucial in China, making up over 25% of GDP and two-thirds of household assets.
- It's considered the world's largest asset class, valued at $62 trillion.