China Is In Economic Dire Straits And They're No Longer Able To Hide It
(www.zerohedge.com)
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America needs to gear up and start producing the needed products that are made in China, like medicines and high tech parts. Just not the $2 sweatshirts. All the clothes made in America should be made to last for many years, the way it used to be before Walmart. We also hope all the Walmarts will be closing and millions of new mom and pop stores reopen across America.
I'd like to see both Walmart and Target shut down. Those 2 stores push mostly made-in-China stuff that is foolishly useless or shoddily-made.
Neighbors down my street are in debt because they can't resist buying the latest lines of holiday and decorating glop.They have a messy house filled with junk and 2 storage units just for the holiday decor. Yowsa. And get this, the neighbor told me she's mad at Trump because his tariffs may delay or cancel the newest home decor, Halloween and Christmas decorations for 2025! Insane. Oh well, they're probably in the minority, but way too many people feel they must have the latest Chinese junk for consumption.
it is not going to take long before they come to the table to make a deal...they know it and POTUS knows it ....... if it goes a few more weeks i would be surprised... XI is in a catch 22 needs to make the choice piss off the CCP or face the peoples revolt...not a good spot........
China will not be able to survive tariffs on the current scale for long (a single year of 124% tariffs would crush China's economy beyond repair). The US is 15% of China's export market, which may not sound substantial but their next largest trading partner (outside of Hong Kong) is Vietnam at 4% of exports. In terms of domestic buying, China is 11% of the global consumer market which is not too shabby, but compared to the US with its 30%-35% global consumer market share there is no chance that the Chinese will be able to fill the void domestically and stay afloat.
But the situation is far worse than most people know...
China has been suffering from a deflationary crisis since 2023. An uptick in exports during the pandemic was offset by the CCP's draconian lockdowns. This was, essentially, fiscal suicide on the part of the government and China has been struggling ever since. Their property market has imploded, partially due to overbuilding through government subsidized infrastructure programs that flooded the market with poorly constructed homes and buildings that were then left to rot. Corporate defaults have run rampant and left investors with nothing.
There was some optimism that the government’s measures to end the crisis had been working to reinvigorate the market, but on Mar 31st, government-linked developer Vanke reported a record 49.5 billion yuan (S$9.1 billion) annual loss for 2024. It’s the company’s first full-year loss since its initial public offering in 1991, reigniting concerns about the sector and showing just how deep the problem runs.
If you add to that 15% about an additional 15% from trans shipped products sent to the US from other countries - like Vietnam and Cambodia. That brings the total amount of trade to the US at around 30%. That is why Trump expanded the tariffs to other nations - to cut off the trans shipment avenues for China. So far, Xi's recent trips to other Asian nations to rally support against the US has not yielded the results he was hoping for. China is being isolated. Those nations do not want to lose access to American markets. They know which side of the bread is buttered.
15 percent of their market but 80 percent of their revenue.
Dire straits? Plays money for nothing