Beijing has been issuing optimistic-looking purchasing managers' indexes for the services sector, but Stevenson-Yang, also the author of China Alone: Return to Isolation, persuasively argues these numbers do not show the true state of economic growth.
China needs factory orders from abroad and foreign investment.
In the short term China can afford its nukes, but the budget of the Chinese central government is strained because of Xi Jinping's other grand ambitions, such as his building and maintaining an enormous surveillance state - this costs more than the Chinese military - and his Belt and Road Initiative worldwide infrastructure-building program.
"The BRI is faltering and crumbling as China has overextended itself because of pressure from Xi Jinping to push it through too rapidly and without adequate contingency provision for the economic downturn caused by Russia's invasion of Ukraine and other factors," China analyst Charles Burton of the Macdonald-Laurier Institute told Gatestone.
"We now know that China spent $240 billion on country bailouts from 2008 to 2021, correlating with a drop in Chinese lending for infrastructure projects that are the core of this Belt and Road Initiative. It is clear that China is now overstretched and unable to continue with the BRI overall plan into the foreseeable future."
Sure, China has foreign reserves and gold, but there is a brewing local currency crisis.
https://www.gatestoneinstitute.org/19572/bankrupt-china-regime
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