The Economic Crisis That Threatens the Chinese Model - VisualPolitik EN

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China's economic and financial situation has deteriorated over the past few years and now threatens to plunge the country into a major crisis. In the coming months, Xi Jinping's government will have to deal with record debt levels, low productivity, a bursting real estate market and a possible financial crisis. But to what extent is the Chinese model under threat? In this video we tell you all the details.

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[@MrConquer]

One talking point that I've heard about China's current situation (both economically and social) is that the government is continuing to impose heavy/restrictive covid measures as a means of subduing any social unrest going on in the country as a result of the economic situation (or more specifically, the public reaction to the housing situation). A side effect of continuing to limit certain areas of the country is that public spending will further decrease and not help with boosting the economy. This in turn would also play into a talking point in the video about how Xi is more worried about political unrest than the economy itself.

[@ajr993]

China also has a cataclysmic environmental and water crisis going on that wasn't even mentioned here. It's truly devastating the various droughts that hit China. In the north water per Capita is in such extreme scarcity it's about as bad as living in the Sahara. Meanwhile lots of the water is totally polluted and unusable.

[@luxuryhub1323]

look when you take into account the nationwide drought in china and how they've been restricting water and electricity to factories... it's the perfect storm.

[@psyhydeluo5833]

The real issue is, with rampant corruption, public expending poorly translate into public service and welfare. Civil rights and public service are not well known concepts in China.

[@aesma2522]

Being French I perfectly understand the appeal of real estate as an investment for regular people. Here it's very common. However buying several properties on top of your home means becoming a landlord, and thus you look at the city you're investing in, if there are jobs there, population growth, etc. It happens that some of these investments are bad ones in France, if you don't do this due diligence. It seems in China they buy anything, built anywhere, even in the middle of a desert, and there is no plan to actually rent the property. Nobody seems aware that their population is shrinking and thus there is actually no need for all these flats, meaning they're absolutely worthless and an environmental burden. It's absolutely insane.

[@teahorseguitarstraps1856]

Thanks for avoiding the hyperbole of other videos on this subject. China's economic situation is grim, but all of these videos titled "China will collapse in 30 days" are getting tiresome. No one can be 100% sure when a bubble will pop. It'll be ugly, but how quickly it unfolds, and exactly what form it takes in China is something we cannot predict with great certainty. Comparisons to crises in western countries can only go so far, since there are numerous factors unique to the Chinese situation, from capital flight controls, to direct control of banks, to tighter control of public narratives.. the list goes on. So, in many ways, we still have to wait and see. The story will continue to unfold for some time before a clear picture emerges.

[@vinniechan]

Theres a dead pan joke that "the GDP of China has managed to maintain growth this quarter.. thanks to the effort by the Statistics Bureau"

[@benmartinez1267]

Hope this lets the country of Taiwan stay safe

[@tonysu8860]

It's remarkable how China's CCP has been reversing course and issuing opposite edicts in recent years compared to what existed ony 5-10 years before...

[@JJ-he7yy]

3 points not covered in the video

[@adelahogarth2761]

I spent 9 months touring about China in places like Guizhou--the PRC has always been in 'economic crisis'.

[@lisaollie4594]

What are your thoughts on the emerging crisis in China (mortgage payment strikes and systemic risk from fractional-reserve banking) and it's likely impact on emerging markets?

[@jayl878]

The problem is that the local government enmities cannot run without selling new land for development. This goes to the developers and the rest of the real estate sector, basically a Ponzi Scheme. These people are paying for properties that may never exist. The whole system will crash once the population realizes this and the confidence plummets.

[@felixwallace1811]

Despite the economic crisis 😔<>

[@rep3e4]

Great video, thanks

[@potatoporridge]

I get this unnerving uncanny valley feeling from your videos when the narrator is on the screen, because it's always slightly sped up.

[@ducknorris233]

Once you see Ping compared to Winnie the Pooh you can’t unsee it.

[@FukUrToS]

Tbh they are lucky they got off so easy with covid after blaming the US 👀

[@simonpannett8810]

Higher costs and disruptions in China are putting other Asian nations in play for foreign investors!