Why Has China's Economy Suddenly Slumped?

While it first appeared China's economy was making a great post-pandemic recovery, recent economic data is casting doubt on this narrative. So in this video, we break down why China's property sector, exports and consumption are hold back their economy.

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00:00 Introduction
02:17 Property Sector
03:57 Exports
04:56 Domestic Demand
06:15 What happens next?

[cxzact]

It's a peculiar concept that Chinese companies are now hoping to grow the Chinese consumer market into an appropriate base for them to profit off of while also underpaying the laborers who make up that very market in order to produce cheap goods. Essentially, an underpaid work force is now expected to make up the market who then buys the cheaply produced goods. Even stranger when you take into consideration that those very companies are all subsidized by the government using tax revenue to out compete international competition. There's a few flaws in this plan. This seems unsustainable.

[niklav]

The issue is the zero covid thing had effectively convinced people to save in case something strange happens and they lose their jobs, leading to less demand and people actually losing jobs, leading to more savings, etc.

[me]

The "Lying Flat" and "Let It Rot" movements have been a thing for a couple of years, but they seem to have picked up quite a bit recently. I suspect that kind of widespread disillusionment with the current system is a factor. Maybe not majority but surely a significant one.

We've been seeing this kind of youth frustration around the world, but Chinese youth seem especially frustrated.

[Stonescreamery]

The market's direction can swiftly change, with indexes frequently transitioning from a bear market to a bull market precisely when the news is most negative and investor sentiment reaches its lowest point.

[realsong-fake]

There is no sudden change. It just reach to the point they can't fake the number anymore.

[nazodreemur]

You can either accept the bitter truth and fix the problem
Or you can lie to make you name good but the problem worse

[RASMUS]

Who would've thought underpaying your workers could reduce the people's ability to

[NinjaMan]

Japan's real estate bubble bursting halted their incredible rise 30 years ago. China has an even bigger real estate bubble and yet we should expect different results?

[David-Rymer]

China: ok, we got the covid numbers down. Time to get back on track.
Economic stagnation: wazzup beijing

[veritaspk]

Many analysts argue that tightening state control over the economy in China is the cause of the problem. But it is possible that years ago, the CCP realized that economic growth at the current level is impossible and strengthens its control to maintain power over the state when the economic slowdown comes and social discontent begins.

[fenhen]

“Weakness in 3 areas: The property sector, exports and domestic demand.”
…Isn’t that basically everything?😅

[lucycabalinass]

Inflation hits people a lot harder than a crashing stock or housing market as it directly affects people's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this Economy. The ETF/Equity market keeps swinging.

[johncmsh]

I would assume if they want to move to a consumer society they need to stop outrageously under paying the work force. You can't have a consumer society if nobody has the space cash to consume.

[CWR]

if someone with a British accent says the word "brilliant" it always sounds like they are being sarcastic and trying to express their disappointment.

[theconqueringram]

From what I understand, Japan's real estate asset bubble damaged their economy by the time of the 90s. It seems that China's bubble is even worse.

[scaper]

I feel like if the Chinese actually do get wage increases, it’ll all just get funneled into the housing market and exacerbate the problem. Housing is pretty much the only investment they can make these days, and it also underpins the chance of marriage.

[prateekbhurkay]

Finally TLDR does a video about the topic

[hanstun]

I just bought a bike that was entirely made in Germany. It was cheaper than the one made in China for a very simple reason, automation. Any country that is riding high on cheap labour will be in trouble very soon.

[hermdude]

1:31 This choice of stock footage is interesting since this might more likely be a Chinatown area in Thailand rather than Little Bangkok in Hong Kong, either place doesn't really show a typical Chinese urban location.

[aydin]

It is gone, we lived through the zenith of our time.
These bourgeoisie individuals in tandem with the corrupt govt. will take down this country like what happened to Rome. My condolences to anyone approaching retirement, you may have concerns over whether your pension pot will stretch to cover the rising cost of living, bad regulatory policies, bad energy policies and insane fiscal policies