They are not idiots. Don't think like that. The Chinese are masters in currency manipulation. Each and every action taken by the Chinese government will be having a motive, which may be very difficult to uncover. And even you can notice that it is not just the Chinese users who are losing money in the recent price dip.
If they are not smart people, how to make their country biggest on the world like now?
China is one of country always like control the price of anything on any market, they are mover and they have enough ability to do that.
China is the 1st economy in the world because the population is manipulated by the regime.
It gives the gvt power to keep a low RMB, poor wages, over-polluted cities... and crazy rules to make this place the factory of the world: cheap workforce.
Besides, it is one of the countries with the highest population.
-> The only way alibaba and co could become something is because the market was reserved to them, closed to foreign companies. Because it is a huuuuge market.
It's a super smart move from super smart government.
But if the population was smarter, or at least less prone to being dominated, a revolution would have occured long time ago.
Bottom line: best recipe for economic success is a smart dominant power and a lot of dumb sheeps to follow orders blindly...
China did it.
