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The Chinese economy is not in good shape and others are finally starting to take notice.

We reported that the Chinese economy was not doing well before COVID-19 was released in China on the world population.

Trump’s genius: China’s economy is growing at the slowest pace in 30 years – Prognosis for the future doesn’t look good

The coronavirus has sabotaged economies around the world, but China has not been immune. Its economy was also negatively affected. Now China is facing a serious economic crisis linked to the overdevelopment of its properties. The largest debtor in the world, Evergrande, is unable to pay his debt. Again, today this made headlines.

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China Evergrande Group passed another debt maturity with no sign of payment, after coupons expired Tuesday on two dollar bills, both with a 30-day grace period before a default can be declared.

We reported in September that Evergrande is the beginning of the collapse of the Chinese economy.

Will Chinese real estate giant Evergrande make its pending payments today or will it be the beginning of the collapse of the Chinese economy?

Now others are starting to see the signs too. Antonio Graceffo at War on the rocks write earlier this month:

China could be there creditor al worldbut it is also full of debt. Between public and corporate debt, China is one of the most heavily indebted large economies in the world. Worse still, its state-owned banks are in mountains of bad debt and bad loans, particularly in the real estate sector. And that’s just on the surface. Below is a staggering amount of obscure debt, off-balance-sheet loans, wealth management products, and local government financing vehicles. All in all, China’s debt is considerably larger than it first appears, and so high that some analysts believe it is at dangerous levels and could spill over, causing serious damage. the world economy. What does this say about the stability of the global economy and Western anxieties about China’s rise to prominence in world affairs?

It appears that China’s meteoric economic rise is coming to a halt. The developing world may suffer the most, particularly those countries that depend on the sale of natural resources to China or on Chinese aid. In developed countries, such as the United States, the main victims will be people and companies that have invested heavily in Chinese companies and stocks. In the long run, there may be some positive results. An economic collapse in China, or a severe economic downturn, could accelerate the general exodus of foreign companies from China and a rebalancing of global supply chains. This would reduce the world’s dependence on China and could lead to a boom for nations like Vietnam, India or Indonesia, which are only too happy to host foreign factories that have left China. The benefits will take time, however. The negative effects will be felt immediately.

The Chinese economy is by no means in good shape. Don’t believe the propaganda that says otherwise.



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