Morning Wire China’s Coming Collapse | 8.21.22
Aug 21, 2022
Gordon Chang, a columnist and author known for his insights on China, shares a provocative perspective on the country's impending economic collapse. He discusses critical issues, including the debt crisis and developer defaults that threaten stability. Chang explores cultural implications, such as the youth's 'lying flat movement' amid demographic challenges. He also analyzes how China's fall could reshape global trade dynamics, emphasizing misconceptions about its stability and the ideological divide between governance styles.
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China's Property Crisis
- China's property sector, 25-30% of its GDP, is collapsing.
- Mortgage boycotts, defaults, and plunging sales indicate a crisis of confidence.
Global Impact of China's Economy
- China's economic woes haven't significantly impacted the global economy yet.
- Its predatory trade practices mean its potential collapse might benefit other nations.
China's Debt Crisis
- China's debt-fueled avoidance of a 2008-style downturn has created a larger, more intractable crisis.
- Beijing's attempts to stimulate the economy are failing due to lack of company confidence.
