Facts are... Chinese Government acted before the problem got bigger, it matters not if it will take years or a decade. When Evergrande and other developers ran into a brick wall was when the Government banned any new loans or rolling over any old debt. Though most western media calls it a crisis, it was in fact an orderly shutdown of excess by prudent policy makers.
The "intervention" by Chinese government will have caused an abrupt contraction of big ticket (for a family) discreptionary purchses like cars. A small reduction of Chinese EV demand have huge implication for Lithium prices. Bearing in mind 55% of all EV built globally are sold and used in China, even a 10% demand reduction in China alone will mean a big oversuplly of lithium supply in the short term.... Hence the reduction of lithium products.
Of course Chinese government could have just buried their head in the sand like the feds in 2008 and dealt with 50% stock market crash and 75% to 90% property price decimation overnight for 10 years
As for Evergrandes $7.6B its peanuts compared to Feds printing from 2008 to 2010 well over $2 trillion. Harvard Business Review https://hbr.org/2018/09/the-social-and-political-costs-of-the-financial-crisis-10-years-later#:~:text=The%20combination%20of%20increased%20expenditures,year%2Dlong%20war%20in%20Afghanistan.
$2Trillion spent by American tax payers vs $7.6 billion (or even ten times that 76B) wonder what most Chinese will prefer?
