CHINA’S ECONOMY IS EATING ITSELF ALIVE — AND XI jinping STILL WON’T ADMIT WHY
🔥 WELCOME TO THE WORLD’S FIRST SELF-CANNIBALIZING SUPERPOWER
Inflation is the monster haunting every major economy today — except China. beijing has stumbled into something far more dangerous: deflation, an economic black hole where prices fall, profits collapse, wages shrink, and companies begin devouring each other to survive.
china isn’t cooling down.
China is eating itself alive.
And the worst part?
Xi jinping won’t admit the meltdown comes from the very model he spent a decade glorifying.
1. When Prices Fall, Dreams Die — China’s Deflation Nightmare
While the rest of the world is begging for prices to stabilize, china is drowning in the opposite problem: everything is getting cheaper, fast.
Sounds good?
It’s not.
Falling prices mean:
Companies can’t make profits
Workers don’t get raises
Consumers delay purchases
Businesses stop expanding
Banks choke on bad loans
It’s an economic chain reaction with one name in China:
Involution — a death spiral where competition becomes cannibalism.
Companies slash prices just to stay alive. Their rivals slash harder.
Nobody wins.
Everybody bleeds.
2. BYD’s $8,000 Electric car Is Not a success Story — It’s a Warning
Headlines celebrate China’s “ultra-cheap EV revolution.”
Reality? It’s a slaughterhouse.
There are 130 domestic EV companies, all desperate, all undercutting each other, all hoping to survive one more quarter.
The BYD Seagull selling for under $8,000 isn’t innovation.
It’s a distress signal.
The same oversupply is crushing:
Solar panels
Lithium batteries
Consumer electronics
Telecom equipment
These sectors aren’t competitive — they’re overcrowded, subsidized, and cornered into a mass suicide pact.
3. How china Created Its Own Monster: Too Many Factories, Too Few Buyers
Local governments poured billions into shiny, futuristic factories.
Why?
GDP growth targets. Political pressure. Provincial bragging rights.
Now china has:
Too many companies
Too much capacity
Too few customers
Too little demand
Everyone builds.
No one buys.
And beijing refuses to pull the plug.
4. Profit Collapse = Wage Collapse = Consumption Collapse
As corporate profits nosedive, the fallout hits ordinary people first:
Wages freeze
Bonuses vanish
Layoffs spread
Youth unemployment explodes
Consumer confidence evaporates
Cheap cars don’t matter when salaries can’t cover rent.
Cheap solar panels don’t matter when jobs vanish.
Cheap goods don’t matter when nobody has money.
This isn’t affordability.
This is economic starvation.
5. china Solved This Before — But This Time the Rules Are Different
Ten years ago, china had the same crisis — too much coal, too much steel.
Beijing’s solution was blunt but effective:
Shut factories. fire workers. Force consolidation. Done.
But today’s disaster is happening in:
EVs
Batteries
Solar
Semiconductors
High-tech manufacturing
These are Xi Jinping’s pride industries — the sectors he showcases to prove China’s technological supremacy.
He can’t cut them.
He won’t cut them.
So he pretends the problem doesn’t exist.
6. The Real Fix Requires Something Xi Won’t Do: Admit Manufacturing Has Limits
The only sustainable solution is to boost demand, not expand production.
That means:
Letting consumers keep more income
Strengthening the social safety net
Increasing household spending power
Accepting slower factory growth
Relying less on exports and overbuilding
But this requires Xi to admit a fundamental truth:
China cannot manufacture its way out of every problem.
And Xi has staked his entire ideological identity on the opposite belief.
A leader who never admits mistakes cannot fix structural ones.
And so China’s economy keeps chewing on its own limbs.
🔥 BOTTOM LINE: The World’s Second-Largest Economy Is Imploding From the Inside — And beijing Is Watching Quietly
China’s crisis isn’t a financial crash.
It’s not a pandemic hangover.
It’s not a demand glitch.
It is systemic self-cannibalization driven by:
Too much production
Too little spending
Too much pride
Too little flexibility
And until Xi jinping stops worshipping the manufacturing machine he built, the machine will keep devouring the nation that built it.
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