WR1 General Discussion, page-32754

CCP being the ultra capitalist that they are will not bail out failing enterprises and industries...unlike United Socialist of America (usa) forever printing money to bail out their failed corporations.

https://www.copyright link/world/asia/china-s-economy-is-on-the-edge-why-won-t-xi-rescue-it-20240904-p5k7p4

China’s economy is on the edge. Why won’t Xi rescue it?

To the rest of the world, it looks like Xi Jinping and his inner circle of economic managers have painted China into a corner. What is less well understood is that he wants to be there.

China’s apparent economic freefall continues. On Monday, weakness in the steel industry pushed iron ore below $US100 a tonne. On Wednesday, Bank of America joined Goldman Sachs and JPMorgan in slashing its Chinese GDP forecasts. And on Thursday, real estate investment figures revealed a 10 per cent year-on-year slump.

Bad economic news out of China is hardly news any more. For the last two years, everything from housing to domestic consumption has depressed enthusiasm for the world’s second-largest economy. The ripple effects have been felt around the world, as Chinese consumers snap their purse strings shut and hide money under the mattress, fearful for their jobs and their homes.

And for just as long, Xi Jinping’s Communist Party government has refused to do anything significant about it. Calls for the waves of stimulus that bolstered Chinese growth over the preceding 10 years have fallen on deaf ears. Programs to jump-start confidence have been lacklustre at best.

Xi has maintained this explicit instruction for his rank and file bureaucrats: do whatever it takes to keep shifting the economy towards high-tech innovation and away from the old investment-led model.

Polluting industries, infrastructure investment and property speculation are out; cutting-edge technologies, battery manufacturing and research-led development are in. If that means people suffer at home, and companies, investors and economies abroad lose money, so be it.

Manufacturing electric vehicles and batteries. Designing and assembling semiconductor chips. Securing and enhancing artificial intelligence models. And developing new pharmaceutical patents and biotechnologies. In his mind, economic growth must come from the same place as its security. These are one and the same thing.