{"id":129749,"date":"2021-10-31T12:22:29","date_gmt":"2021-10-31T19:22:29","guid":{"rendered":"https:\/\/lifeboat.com\/blog\/2021\/10\/if-chinas-economy-keeps-stumbling-it-wont-just-take-down-beijing-the-whole-world-will-collapse-with-it"},"modified":"2021-10-31T12:22:29","modified_gmt":"2021-10-31T19:22:29","slug":"if-chinas-economy-keeps-stumbling-it-wont-just-take-down-beijing-the-whole-world-will-collapse-with-it","status":"publish","type":"post","link":"https:\/\/lifeboat.com\/blog\/2021\/10\/if-chinas-economy-keeps-stumbling-it-wont-just-take-down-beijing-the-whole-world-will-collapse-with-it","title":{"rendered":"If China\u2019s economy keeps stumbling, it won\u2019t just take down Beijing \u2014 the whole world will collapse with it"},"content":{"rendered":"<p><\/p>\n<p><iframe style=\"display: block; margin: 0 auto; width: 100%; aspect-ratio: 4\/3; object-fit: contain;\" src=\"https:\/\/www.youtube.com\/embed\/pAyV-iyCUcE?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope;\n   picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<p>China\u2019s economy \u2014 the 2nd-largest in the world \u2014 is teetering on the brink of disaster.<\/p>\n<p>Since this spring, Beijing has<a href=\"https:\/\/fortune.com\/2021\/07\/09\/didi-ipo-stock-data-crackdown-china-wall-street-investors\/\"> canceled<\/a> initial public offerings, fined tech companies<a href=\"https:\/\/www.nytimes.com\/2021\/04\/09\/technology\/china-alibaba-monopoly-fine.html#:~:text=The%2520penalty%2520is%2520the%2520biggest, supervision%2520of%2520its%2520internet%2520Goliaths.&text=By%2520hitting%2520the%2520e%252Dcommerce, got%2520our%2520eyes%2520on%2520you.\"> billions<\/a> for antitrust violations, forcibly shut down China\u2019s<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-07-24\/china-bans-school-curriculum-tutoring-firms-from-going-public\"> entire for-profit education<\/a> industry, and sent CEOs running <a href=\"https:\/\/www.theverge.com\/2021\/5\/20\/22445212\/tiktok-bytedance-ceo-zhang-yiming-steps-down\">for the exits<\/a> to avoid the government\u2019s ire. Even more dire, the Chinese megadeveloper Evergrande<a href=\"https:\/\/markets.businessinsider.com\/news\/bonds\/evergrande-default-missed-bond-fantasia-china-property-fitch-debt-credit-2021-10\"> recently started missing payments<\/a> on its more than $300 billion in debt, shaking global markets. The convulsions have woken the world up to a startling new possibility \u2014 that Beijing may be willing to allow some of its private corporate behemoths to collapse in a bid to reshape the economic model that made China a superpower.<\/p>\n<p>The upheaval, spanning multiple industries and vast swaths of the country, is the result of one giant issue: China\u2019s inability to borrow or buy its way out of its current economic crisis. For decades, the country relied on cheap labor and eye-popping amounts of debt, handed out by government-owned banks, to fuel economic growth \u2014 pouring money into massive apartment developments, factories, bridges, and other projects at lightning speed. Now the country needs people to actually <em>use<\/em>, and pay for, everything that\u2019s been built. But the bulk of China\u2019s population lacks the income needed to shift the economy from one driven by state investments to one sustained by consumer spending.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>China\u2019s economy \u2014 the 2nd-largest in the world \u2014 is teetering on the brink of disaster. Since this spring, Beijing has canceled initial public offerings, fined tech companies billions for antitrust violations, forcibly shut down China\u2019s entire for-profit education industry, and sent CEOs running for the exits to avoid the government\u2019s ire. Even more dire, [\u2026]<\/p>\n","protected":false},"author":556,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39,32,1497,45,1490],"tags":[],"class_list":["post-129749","post","type-post","status-publish","format-standard","hentry","category-economics","category-education","category-energy","category-finance","category-government"],"_links":{"self":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts\/129749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/users\/556"}],"replies":[{"embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/comments?post=129749"}],"version-history":[{"count":0,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts\/129749\/revisions"}],"wp:attachment":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/media?parent=129749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/categories?post=129749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/tags?post=129749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}