The state owned banks stopped lending to property developers, so I think it was by design they decided to take the pain now rather than keep the machine going. At the end of the day the state has a lot of levers and money.
I’m more interested about the lack of electricity though. That’s a total shitshow
That’s totally awesome.
As a translation. Jilin city in Jilin province water company sending a message out saying basically:
“Until March 2022, you will sporadically be without water and electricity. You wont get any notification in advance when the water and electricity will stop. Make sure you have water prepared in advance. And just kinda deal with it”
Whoops. Aged like milk!
I’m thinking we all get fucked from this though, as factories all across China are stopping or scaling down production. Expect shit to start getting expensive
Like Taiwanese factories in Dongguan have been told they have to choose 5 days in every ten to have their electricity restricted. Its not targeted at Taiwanese, but this is the news we recieve
I haven’t been following this story closely.
What’s going on with the PRC’s electricity shortages? Has Australia cut off its supply of coal?
Guy
Its more complex than that, but the Australian coal was an issue. In general they dont have enough coal and there internal issues between the state owned enterprises and the government. The government wont rise energy prices, but the cost of fuel has gone up by 400% in last year, so companies restricting output. I think something like that. I dont really know
Its really bad. 23 factory workers today got serious air poisoning after the electricity took out the ventilators in the factory.
We could be heading for a global crisis. Apple and Tesla for example have stopped production
I think we can live without Apple and Tesla. I know there could be other issues but I think most of these are just discretionary spending. There are power supply and inflation problems worldwide right now.
The problem is if food production decreases due to energy price inflation or lack of power.
They are just big examples.
One guy reading on Chinese Reddit works in one of big technology parks in Shenzhen. We some top tier technology companies are, both domestic and overseas. Over one hundred companies I’m the park.
Their company just temporarily closed down and they have been told there will be ongoing electricity restrictions going forward. Imagines same for all companies.
Whatever happens will effect global supply chains
They found a solution!!!
office premises 3 floors and below to stop using elevators
Poor people in Dongbei who are being made to suffer through the winter. Dongbei is by far the least economically productive area in China(not including Tibet, Xinjiang etc), so they are having to eat shit so that power can be diverted elsewhere.
Candle prices have gone up ten times in price in China
Absolutely hilarious. I don’t care how resilient Chinese economy has been or how many times people have been wrong about Chinese hard landing. China has been booming for a long time and there are massive imbalances throughout the economy and if the shock is big enough it will all come tumbling down. I wouldn’t play with fire if I was Xi Jinping.
Well good for Taiwan I guess. A weaker China is the best thing that could happen to us. The short term economic pain will be worth not having to worry about getting invaded all the time (which will definitely happen if China grows at this rate for a decade or two more).
‘How much cash does it actually have?’
That’s in the pocket of the big guy on top.
China could be in big trouble right now. They have huge disruption in finance, power, education system, what happens if they have food issues ? The big rich cities will suck in the resources I guess to tide them over.
The Coming Collapse of China Episode 207
Its not going to come crashing down. Enough with the collapsism. Gordon Chang has been getting egg on his face for over two decades now.
The state in China has way more resources and economic levers at their disposal than a democracy. You are just looking at slowdown or stagnation for a while
That’s what everyone says before any crash. China’s position is a lot worse than Japan in the 90s. It will be very ugly.
Frankly Idk where your faith in China comes from. I guess it’s because of the Ko brain. Everyone thinks China is fucked at this point.
China is looking at a decade of stagnation. I cant see the drivers of growth that are going to be sufficient for such a large and aging population to keep growing.
*Manufacturing is getting expensive and because of other reasons as well manufacturers are leaving.
*Domestic consumption is still way too low and a decade of trying to stimulate it has shown mixed results
*Belt and Road is successful, but its really benefiting state owned enterprises. Right now China doesnt have a competitor for the BRI but EU, Japan and US keep talking about it.
*Deep Tech/Advanced Tech-Things like AI, 5G, 6G etc is what China is really betting on. The whole economy is being restructured to support and double-down on these future industries. But its kind of a hail mary approach and we will see what happens
*Real Estate is fucked
China always has the option to build more infrastructure and invest in that. The state has the advantage of being able to move resources around at will and can even force the private sector and financial institutions to invest in specific areas.
I dont know what you are talking about. I dont have any faith in China or Ko. I said they will stagnate.
Collapsism is kind of a joke in China Watcher circles, because its fucking ridiculous. China isnt the Soviet Union and no amount of wishful thinking or FLG videos will make it so.
The CCP is basically a crisis-management machine(as a crisis creator) and the one thing its adept at is managing crisis.
They are looking at slow down and stagnation not collapse. Japan didnt collapse after the 80’s and is still one of the richest countries in the world. Most countries would like a collapse like Japan.
