Why Even China’s Exporters are Now Going Broke

China's longstanding economic crisis appears to be spreading to their industrial sector which only adds to the problems facing the CCP. So in this video, we'll explain the three reasons behind this decline and why the solutions won't be easy for the CCP.

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[thuynder]

*Anything happens*
TLDR: As we see it, there are three main reasons.

[SeaWaves]

I've heard the word exacerbated on this channel more times than I heard it throughout my whole life

[KikomochiMendoza]

theres a reason why chinese companies making cheap stuff like Temu and Shein are going aggressive with their marketing, China needs more exports.

[Fanaro]

They pay crap wages, and then have the gall of asking why the middle class doesn't have enough money...

[cristianbalan]

"There is no overcapacity problem in Ba Sing Se"

[michaelthomas]

It's like all the major countries are just competing to see which one can screw itself up slightly less than the others, and hoping that one gets crowned the winner.

[telenNG]

My friends in China would say

Let it rot

[StopMotionMakr]

Problem with dictatorships is that every mundane issues eventually become an existential crisis.

[samuela-aegisdottir]

What wasn't in the video was the growing Chinese hostility towards foreigners in their country, drastic changes in regulation, technology thefts and similar harsh political climate that leads to bussiness insecurity, and its agressive wolf-warrior diplomacy.

Companies won't invest in China if they feel they can't predict the behaviour of Chinese govrenment towards them, they will also hesitate to send their employees there if there is a fear for their personal safety. When not having good relationship with China, countries won't have restrains to impose tarrifs on Chinese goods when they think their economies are hurt by Chinese imports.

The covid-related and the War-in-Ukraine-related economic disruptions have also given everybody a lesson. It is not really safe to invest in China nor to rely on it in supply-chains when the Chinese government seems increasingly likely to invade Taiwan.

Almost seems like agresivitiy don't make you good friends.

[RandomGuy-rlbo]

I studied business in china for a couple of months as an exchange student and foreign entrepeneurs in china will tell you just how difficult it is to setup shop there. Since the creation of joint ventures, China never intended to compete in good faith with other global economies, stealing their IP and creating a bureaucratic hellscape for foreign investors in to China, while simultaneously ramping up domestic production. Assets can be seized over a failed business partnership, and local judges could be bribed to lead to favourable local business competitor climate.

Foreign companies dealt with it because it was always enarmoured with China's market size and per capita spending, but over time entering that market and dealing with the cost tradeoffs just seemed too much. Now everyone's just tired of dealing with the bs and enacting tariffs while signing other trade agreements around China.

[darter]

You mean to tell me that Russia isn’t buying enough to prop up the Chinese economy?!

[samuela-aegisdottir]

6:12 Spending more than 100% of your tax revenue on debt servicing is just crazy!

[innosam]

“There’s no overcapacity problem in China.”

[blazer]

Brazil doing tariffs on Chinese goods. So much for brics

[Mhark]

"Balancing the economy towards consumption"
Aka consumerism

[EAGLE-rs]

Can you do a video on the relationship between IMF and African countries

[Enalog]

6:44 "Restoring confidence in the property sector" is something they don't want. The bubble was popped on purpose precisely because they want housing prices to keep falling to the point where it's affordable for everyone.

[daffyf]

It just seems every economic news story I hear these days has the same solution to me: raise wages

[pachocharoenzo]

Meanwhile, China is sending a lot of goods to Thailand right now, causing local businesses to shutdown due to Chinese products are 2-3 times cheaper than local's.

[Torus]

I don't know how they thought they could get away with having no tax revenue for municipalities for so long, they could have started phasing in things like land taxes at least 20 years ago.