>>64512111
Japan is not a fair analogy, it was never considered a pariah for business or had a single party states that pumped out propaganda and fake stats. Modern China was created very rapidly on leveraged foreign direct investment. Their official stats say youth unemployment is at 17%. Try doubling that to get a glimpse of reality. Their official stats say urban unemployment is at 5%. Double that to get a inkling of what is going on there. Their financial system is cracking, it got fistfucked by the insane property bubble there popping and now is getting the real effects of what began in 2023, nike leaving is the symbolic marker for me .
https://apnews.com/article/nike-china-tariff-trump-f84fe37e11dbf4b439d8655d3533380c
"Nike’s shares jumped at the opening bell Friday after the company said it’s shifting some production away from China. But it also warned that tariffs imposed by the Trump administration will cost it about $1 billion before it makes internal changes, which include “surgical” price increases in the U.S. starting this fall."
Any inflationary pressure caused by goods increasing in price as manufacturing moves are temporary, a new factory opens somewhere else and life goes on. But foreign direct investment does not go on for China.
Imagine trying to convince a board of directors to back a manufacturing facility in China today with hard cash. You'd get fired. Chinna will try dumping cheap goods at a loss globally but that won't do them any good because it is at a loss and just haemorages more money
And poof it is gone. China tried using the manufacturing capacity granted to it by foreign direct investment as a geopolitical weapon. That was really really dumb. Deng was very smart compared to Xi. Xi fucked up big big time
One interesting tangent is the effect on Russia. China is in no position to step in and gamble more of their vanishing finances propping Putin up or the moderisation of a new pseudo vassal state.
