China's problem is that ... the Chinese economy is the most natural and largest bubble in the world economy, in world history! And the funny thing is that the Chinese economy is exactly the same as the crisis of 2009, when the real estate bubble burst! They did the same, only within the local market. And the result was not long in coming. But in the case of the Chinese economy, everything will be even worse - not a segment of the market, but the entire economy will collapse, because. In China, the domestic market is very "fragile" and everything is highly dependent on all internal processes. After the "explosion" of the real estate market, the construction-related market has already begun to crumble (from the production of concrete, building metal to manufacturers of electrical wiring, laminate and household kitchen appliances) ... And these are millions of workers who will soon be left without work, companies will stop paying taxes , and .. and further in a vicious circle. The only thing to say is that this will not happen this year for sure, China still has some inertia.
PS by the way - the United States officially began to withdraw production and technology from China, and transfer it to the United States, to solve 2 problems:
1. Solve internal problems, "burn" tons of money printed, give new jobs and boost the US economy. At the same time, provide their manufacturers with microelectronics (microchips, etc.)
2. Show China its place, and force it to be more accommodating.
Have you ever wondered why large factories from the USA and Europe moved to China?
Anyone who studies economics knows that the production of goods in China is more profitable than in the US and Europe.
Therefore, the US government will have to spend a lot of money to compensate for these losses and train its engineers.
The situation with Taiwan is even more ridiculous for the US. Chips are made in Taiwan for the US military industry, and they are located near China and Russia. It doesn't matter that Russia will locate military production in Cuba.
Partially agree. In terms of production costs, in the 80s it was profitable to build factories in China, pay low taxes, pay low wages, and make extra profits. It was.
Now the situation has changed.
1. China stopped being a very poor country, and the cost of production began to rise. There is an increase in the level of wages and taxes, and much more.
2. China began to behave "badly" - this is China's "pirate" approach to replicating "alien", non-compliance with copyright, ...
3. And most IMPORTANT - China has become not only a monopolist in some areas, but has also become potentially unsafe for those who "once pulled China into the 21st century from the stone"
Given these factors, and especially the third one, the reverse process has now begun - "the exodus of manufacturers from China." Well, plus, after all the covids and other global problems, for example, the United States needs to raise its industry, create new jobs, ...