Everything in China can be explained by demography. China's biggest problem is that the world in which it sells, and sells very successfully is also changing. America and Europe face the same demographic challenges that China faces.
What it means is that an ageing population consumes less and invests more, then it stops investing, producing and consuming. Aging is the great equalizer. Americans are aging as are Europeans so their respective economies are slowing, hence China's export market is shrinking.
The pressures are not only with the clients but also internally. China's population is no longer growing, but it is aging. When you are 60 in China you start to look at your savings, and a surprisingly large percentage of the middle class savings are in real estate. 75% of all savings are real estate and 95% of this real estate produces no income.
In 2019, in a town unknown to most foreigners the government demolished 15 high-rise towers that had been abandoned for 7 years by the developer that had gone bankrupt. The 15 towers where 6,300 apartments were demolished. This demolition was just one of the most extreme cases of very poor-quality unfinished housing.
China has a few problems, a shrinking foreign market, a limited domestic market and an aging population. None of these variables are positive for economic growth. My point is that China like any nation faces challenges.
China Real estate crisis: Chinese are aging and using their savings (aka the spare apartments they bought)
China local government crisis: 100% of local governments were financed by the real estate boom
China MIlitary: Ok that has nothing to do with demographic, except that the theft of resources was known for years.
China is facing the same demographic challenges as Japan and Korea, yet /100% of its solution are based on mercatntile solutions. It says more about China's leadership than about China itself.
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