Doing so would either cause another bigger evergrande and/or devalue the artificially high RMB, meaning more printed RMB needed for imported inputs.
No inputs, the factories stop.
No factories, no exports.
No exports, then the RMB goes down further to maintain existing living standards.
Living standards go down and the unspoken deal between the CCP and the Chinese people is broken, and China has its long overdue revolution.
Letting evergrande bite it and trying to mitigate the consequences is what they’re going with. But the mitigations will cause another bigger evergrande, and the cycle begins anew.
Doing so would either cause another bigger evergrande and/or devalue the artificially high RMB, meaning more printed RMB needed for imported inputs.
No inputs, the factories stop.
No factories, no exports.
No exports, then the RMB goes down further to maintain existing living standards.
Living standards go down and the unspoken deal between the CCP and the Chinese people is broken, and China has its long overdue revolution.
Letting evergrande bite it and trying to mitigate the consequences is what they’re going with. But the mitigations will cause another bigger evergrande, and the cycle begins anew.
Nothing can stop what is coming. Down she goes.