China’s Infrastructure Collapses Under Extreme Weather | Chinese Economy & Consumption

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00:00 Introduction
00:39 Extreme Weather, Flooding, & Bridge Collapse
03:28 Chinese Economy: Rhodium on Consumption
06:45 Sponsored Investment Opportunity
10:21 Consumption continued

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[deborahcurtis]

Seriously concerning situation with the failing infrastructure. Some of us have foreseen these outcomes but this doesn't make it any less painful.
Thanks so much for all your efforts Tony!

[dcc]

If China's own infrastructure are built to such low quality standards, I'd hate to think what kind of shape the BRI projects are in.

[Mike]

The use of maps to identify the locations is very much appreciated. I've seen many of these video clips before, but they lacked useful context.

[kateryan]

Great news. Let's all further help the Chinese out by reducing any Made-in-China purchases whenever humanly possible.

[aj-usqp]

On the job listening to China Update the best part of a sucky day. Always good to hear Tony's voice despite the nature of the news. 👍

[martygillespie]

Hi Tony … in a recent episode you laid out a statistic that to me is damning. 70% of the average Chinese household wealth is tied up in real estate. With the massive glut in both built properties that no one is interested in renting and unbuilt properties with active mortgages, it seems to me that this immense problem must be dealt with before any expectations of increased consumer consumption can be realized.

[ThorsMartell]

"Rebalancing China's economy towards consumption"

Seriously, have you seen videos of China observer and China insight. If the reports are true (which I assume they are) the Chinese population is scared and keeps their money together. Shopping malls and streets are deserted.

Leading me to the point:
- CN cannot grow by consumption. The population is scared to consume.
- CN cannot grow by investment. Too much unproductive debt-fueld investment already. FDI is also declining as decoubling pushes forward.
- CN cannot grow by export as Western nations are pushing decoubling forward.

So, where is the demand going to come from?

[tonysu]

First thing to notice about the dam breach is that the reservoir is China's largest fresh water lake and presumably considered potable water for drinking and agriculture.

And yet they plugged fbe gap with cars and boats. This undoubtedly means that the water is contaminated with motor oil, grease and other toxins if it wasn't already before.

[Maddog]

Thank you, Tony, for the on-the-fly, C to F conversion 👍🏻

[Cedartreetechnologies]

So, so good to see M. Pettis' insights, here.

[jerryrichardson]

Thanks Tony for another excellent report.

[nerfherder]

A reminder that the last flood was partially caused by the government itself sacrificing rural people for urban areas.

[hanss.]

I wish I could give an extra like for the temperature conversion for those of us in the US.

I suppose I won't click past the ad.

[generessler]

Hi Tony. "Politically motivated growth targets..." Yeah. Perfectly summarizes the problem: the tail wags the dog.

[louisgiokas]

The lack of effective and independent labor unions in China is a big part of the problem. I never would have thought that I would say that. I am not a big fan of unions. There is a whole history behind that, both family and professional.

What makes this even more ironic is that this is happening in the "workers' paradise". Actually, compared to the west, China is labor hell. It is socialist practice that there be only one, state controlled, "labor union". This was true in Nazi Germany and is true in China today. Don't forget that Nazi stood for National Socialism. That economy is the closest there is to what China has become today.

Xi is assuming that he does not have to enrich the people to allow them to spend, and potentially challenge the CCP. He has the tools of state repression to keep them in line. He doesn't have to make them happy. He has actually come out and admitted that. As long as the party stays together, they figure they can control things. This attitude and approach is another eerie parallel with Germany in the 1930s.

[ChadLuciano]

1001 episodes of awesomeness...pine trees all the Tony!

[JustinWheeler_LA]

Love your sponsored features. The way you do it.

[saraseale]

Many thanks for today's Update. 🙂

[uselessoldman]

Relatively optimistic? Just where do they expect this growth to happen since China has lost so many jobs both with domestic and foreign companies closing and many moving production abroad, then you have the issue of over capacity that is out of control. Xi has no interest or intent to allow the masses to have any more money in fact he is intent on using all means possible to remove what little they already have. The truth about the future of China is its economy is fast heading off a cliff back to the days before Deng with hundreds of millions in poverty (the vast majority of the population) and only those associated to the CCP and state companies having any wealth, assuming he actually manages to find some cash somewhere to pay their wages

[lorentzinvariant]

It’s like a perfect storm, in more ways than one.