China’s Nightmare Is Coming! Foreign Business Flee, 23 Trillion Fiscal Deficit & Birth Rate Collapse

Foreign capital is accelerating its withdrawal, a large number of small and medium-sized enterprises are closing down, the unemployment rate of young people is high, the real estate bubble has burst, and the local government’s finances are on the brink of collapse... This series of problems, like a nightmare, envelops the land of China. Although there are factors of global economic downturn, the main reason for all of this is the Chinese Communist Party’s three-year strict execution of its zero-COVID policy, which has caused serious damage to the economy and all aspects of society. Now, the CCP is not reflecting on the lessons learned, but instead, busy rewriting history, avoiding mention of its zero-COVID policy, and even claiming that this disastrous policy has achieved significant success. In the face of social, economical, and political crises, they turn a blind eye and still paint a rosy picture of the situation. Recently, Chinese financial blogger Laoman summarized the cost of the CCP’s three-year zero-COVID policy and answered the question of why the CCP suddenly abandoned it without any transition period in December 2022, after unwaveringly insistence for three years. His summary is very meaningful, and we can draw on its content, as well as our findings in this presentation. We also encourage everyone to participate in the discussion in the comments. first cost of the three-year zero-COVID policy is that the government’s fiscal deficit has sharply increased, with the fiscal burden increasing by 60%. second cost of the three-year zero-COVID policy is the overall collapse of the urban bond market. third cost of the three-year policy, which is that it became even harder for the public to access medical care. fourth cost of the three-year zero-COVID policy is the complete collapse of government credibility. fifth cost of the three-year “zero COVID“ campaign is the collapse of the birth rate. sixth cost of the three-year “Clear Zero“ campaign is the accelerated withdrawal of foreign businesses. seventh cost of the three-year “ Zero COVID“ campaign was the collapse of people’s faith in the future, leading them to stop borrowing to buy houses, and thus causing the real estate bubble to burst. #chinaeconomy #chinacollapse #zerocovid #chinaobserver All rights reserved.