The Ultimate Crony Capitalist State’s economy is driven by debt and decree. To date it has avoided any real deep and broad correction. Perhaps it will avoid serious issues for another year, or two. But an economy built on cronyism has many nodes of weakness and it just takes one of these nodes to disintegrate for the superstructure to become imperiled. China’s economy is more tenuous than many understand.
By the way, the fragility of crony capitalism applies beyond just China. Over centralization and the rewarding of connections over merit with break any system down eventually.
The private survey also found that employment was falling amid inflationary pressures on firms, with companies noting increases in both input and output costs for the month of August…
…China’s economy is now facing relatively obvious downward pressure,” Zhong added in the news release on Monday.