You don't have a sound knowledge of either China or economics, you've likely never been there, and don't seem to have had any serious academic or professional background in business or economics.
There are many key economic elements that have been ignored in the article above, for instance the fact that the Chinese have a very high savings rate:
This totally destroys the household debt argument. In the US, half the households can't afford a $1,000 expense and the great majority of people live paycheck to paycheck. Usury and debt slavery is rampant, applied massively across the higher education, healthcare and housing debt-based industries.
You have out of touch neocon critics bashing China about ghost cities when their own cities have been taken over by hedge funds, Blackrock etc which are turning former homeowners and younger aspiring ones into rentiers. Homeowner rights in China are superior as there are no property taxes, or inheritance taxes on homes.
The housing bubble and even the stock market bubble in China has been
deliberately deflated as a matter of policy, whereas in the West at every recession banksters are bailed out at the expense of the average citizen, and this has been the source of inflation in the West, while in China home prices have come down and other costs (food, cars, transport etc) have not gone up much. Xi famously declared that houses are meant to be lived in, not for speculation.
BYD and Tesla have roughly the same market cap today at $1 trillion, but while TSLA's P/E ratio is over 180, BYD is 21, nine times lower. BYD sells 3 times as many cars as Tesla, and their growth rate is far higher than Tesla, which is currently stagnant. Yet BYD has the same market cap as Tesla...
The basis of US and 5 eyes wealth, home values (mostly held by Boomers) and overpriced stock markets,
F.I.R.E.- driven economies that are far more tenuous than China's. China's
industrial capitalism-driven economy is based on manufacturing, sound supply chain management, human development and technological excellence as illustrated in their achievements in the auto and other key industries like semiconductors, AI, transport/civil engineering, energy (nuclear, solar, batteries,...), logistics etc.
This economy is generating a trade surplus that has constantly risen, currently at $1.2 trillion per year, and has accumulated huge reserves, including a hidden gold reserves well over 25,000T, while officially declaring reserves of 1/10th the size.
In a world awash with money-printing, a currency backed by gold would have great credibility. And China – with designs on the yuan becoming the world’s reserve currency – has a lot more gold than anyone else. But how much?
goldbroker.com
The irony here with the China detractors is that China actually deliberately understates its economic status, it has done so, religiously, since Deng Xiaping's directive of "hiding your strength and biding your time". The Yuan is undervalued by a factor of 30%-50%, that fact alone undermines the notion that its GDP is inflated.
