💢 Great last segment on China Update today. Excerpt from an academic piece on the scale of troubles China finds itself in.
The scale of overcapacity is hard to believe. They are in a typical bust phase of a market, but instead of it being a market economy where the gov steps in with bailouts, it is an authoritarian directed economy. Creative destruction doesn't mean businesses fail, it means the CCP fails.
Here is the op-ed published by the Council on Foreign Relations
Foreign Affairs
China’s Real Economic Crisis
The Chinese economy is stuck. Following Beijing’s decision, in late 2022, to abruptly end its draconian “zero COVID” policy, many observers a...
