The rise in China's GDP is fueled by debt. China is financing internal projects that are politically visible but of little value to its people - and the country is going deeper into debt:
"Practically all of China’s infrastructure projects are being funded with more debt. Economists warn that paying interest on all that debt may be a drag on future growth."
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"As a result, local governments are borrowing heavily to pay for the construction, adding to already immense debts that China’s leaders have tried for years to tame. But projects in remote areas may yield scant economic returns to repay debt. Dozens of new high-speed rail stations have been built in small towns, which ultimately see few paying passengers. In some stations, fewer than three trains make stops each day."
Strong sales at China’s biggest construction equipment maker show Beijing’s strategy for recovery after the virus. But while the company, XCMG, is prospering, the rest of the economy is struggling.
www.nytimes.com
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For China it's a war of attrition. Their government is willing to sacrifice as many as they must in order for global dominance, not of the nation, but of their Party.
Don't be lulled into the debt issue, all nations have debt. Does anyone believe China is good for any of it? They take companies at will, fiercely shut down, silence and punish companies and governments for daring to speak the truth.
In short, the communist government of China is a threat to humanity. They must lose and lose often. Some of this starts at home with higher demands of our businesses and leaders.
You are preaching to the choir.
I simply pointed out that China's rise in GDP is fueled by debt on internal spending with little value to its people. China's economy is not rebounding based on international trade.
This is a very risky gambit by China that could hasten a collapse of their economy.
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Sure, I understand your sentiment. I am however, far less confident in Western leadership. Do we expect the West to withdraw from China, to stop the importing of their products, or at least apply heavy tariffs (sanctions when needed) and protect against Communist Chinas abuses? Listen to the general global silence as the Wuhan Virus kills untold numbers, even leaders of governments were in peril, yet, still silence. It's the most spooky control of a globe without firing a shot.
I've been open in saying I imagine the West will one day turn their backs on HK (long before China did what they did with the security law I predicted this),
we will also turn our backs on Taiwan, Japan and all other nations in their orbit. This, is the trajectory I see, and just at how much effort is being applied to destroy the only world leader willing to stand up to them...
All for the false belief there is some great pot of gold just waiting once the Chinese become capitalism and embrace liberty. It's all one big false dream. It will soon become a nightmare for us all...
It's the single most vital reason I support Trumps policies. His position on China. I don't think nearly enough understand the direct impact their success will have on the misery for all the West. All at a time where we have the least courageous leaders in the West.
ca.finance.yahoo.com
