Very similar. The factories have been starved of cash flow for nearly two years by government policies, lack of demand during covid, and also by the bottleneck preventing shipping deliveries, and yet the government keeps charging regular taxes based on manufacturing capacity. After 2 years of brinksmanship, they are breaking down. The only legal way that factory owners can prevent paying taxes (or having their personal homes and cars seized for failure to pay), is by reducing their capacity. Not quite insurance fraud, more like a Chinese form of tax evasion.

Worth noting that this will provoke civil unrest as all the workers have been sent home, blaming the government, knowing that this was their boss's only recourse. Also worth noting is that China's manufacturing capacity is being destroyed across the board, giving a lot more breathing room for the US to be rebuild its own manufacturing.

Very similar. The factories have been starved of cash flow for nearly two years by government policies, lack of demand during covid, and also by the bottleneck preventing shipping deliveries, and yet the government keeps charging regular taxes based on manufacturing capacity. After 2 years of brinksmanship, they are breaking down. The only legal way that factory owners can prevent paying taxes (or having their personal homes and cars seized for failure to pay), is by reducing their capacity. Not quite insurance fraud, more like a Chinese form of tax evasion.