RE: Is China's Economy Really Failing? - Let's Take Another Angle!
Thanks for cross-posting this artcle to Steemit @ga38jem
I personally don't see how China could avoid any sort of correction in their economy. They have been on upward movement for so long already and they are due to correction. Simple as that.
It is possible for their goverments to "kick the can down the road" for some extra time. Maybe even few years. But there is already to many cracks in Chinese economy to avoid any sort of melt-down.
They already reduced interest rates (which is crazy move in times of inflation). This is done to stimulate property market and help those big developers to carry on with their operations (cost of debt is lower).
Also one thing I like to underline, that even if I believe that chinese Economy will "collapse" sooner than later -> I also think that it will recover sooner than later. It may be brutal correction, wiping out many businesses and individuals. But it will NOT be the end of China.
I was very surprised that this is coming up now but I guess we are in a market situation where the world is about to end soon.
Why would that surprisse you? Those talks started during Trump times already. And it's just accelerating. It's nothing new, isn't it?
While until now the economy was more export driven, it will now start to become more domestic consumption driven.
I don't see it happening. Since Covid-19 and their "no covid policy" there is no domestic consumption being stimulated. If anything - this consumption has been absolutely destroyed within recent years.
Also I would say that all their investment in African countries are nothing but a failure. They won't see those money back. I don't see it happening.
Cheers, Piotr
Hm interesting view. I agree with you that if China's economy collapses they might struggle short term but long term they will recover without problem.
I am not sure whether you should neglect all of the investments into Africa. I think Africa will be the next big economy in general since there is a lot of room for development. I guess only time will tell :)
Thank you for sharing your thoughts :)
You recon? Somehow I have my doubts. It does look like China had their moment and it's gone. They boosted economy mostly by creating huge amount of debt and growing GDP with housing/construction sector.
Now it does look like party is over. I'm not sure if China can recover (once they will fall into heavy correction) during our lifetime.
I don't neglect those investments. I just think that most African countries will turn their back on China sooner or later.
It is one thing to give other countries predatory loans and it's a different story when those loans need to be paid back.
Time will only show.
Cheers