Part 11/14:
Restaurants across China are shutting down at an unprecedented pace—millions closed within just a couple of years, leaving over 30 million workers unemployed and many more on the brink of joblessness. With consumption collapsing, domestic demand cannot sustain economic growth, making it clear that reliance on government subsidies and loans is a temporary fix.
The Dangerous Convergence of Challenges
In summary, China's economy appears to be balancing precariously—propped up on tax hikes, debt-financed spending, and export reroutes. However, all these pillars are fragile:
Tax hikes have a ceiling and will eventually deprive the government of revenue as people run out of income.
Money printing threatens currency stability, risking hyperinflation or a financial collapse.