Vandelay
Waxing Intellectual
Not exactly, their one child policy and upside-down age demographics, non-market driven construction, and their xenophobia in conjunction with a more belligerent stance on the west is all coalescing.Ok I understand. Sounds like their stance towards the west did them under. But to be honest it truly feels like internal politics is what has crippled them.
Fun fact, everyone talks about China's ghost cities, but no one talks about how the vast majority of China's bullet trains are underutilized and unprofitable. All of this construction contributes to about a third of China's annual GDP. Basically China has built a bunch of white elephant projects that look great to the world, but will never pay for themselves. And it's not that every government initiative needs to be profitable, but there is an equilibrium and essentially these projects were funded with loans in hopes of promoting future growth...growth driven from western consumption. So if western investors and consumption drops, they can't pay the loans and essentially companies will begin to collapse.
China Is the world's factory, but the piece most people miss in that phrase is, their supply chain isn't in a vacuum. They get raw materials from Africa, oil from the Middle East, designs and innovation from the west, and finally consumers from the west. They're literally talking down on the people funding their growth.