Part 7/11:
Notably, reform-minded voices suggest that bolder central intervention could ease this imbalance. Renowned economist David Lee Dalqui proposed a quota system whereby firms exiting the market could sell their production rights—creatively incentivizing downsizing.
However, amid all this turmoil, Xi Jinping’s government prioritizes preserving political stability over economic rationality. Yet with labor protests surging and an overall economic slowdown looming, the government may find its options dwindling.