Good summary of chinas economic problems in this short Ray Dalio Video.
- Real Estate Sector is in trouble
- Consumers are not spending money as 70% of their net-worth is tied to real estate and they got more cautious
- Problematic for domestic business sales (?) → wages are lower
- 83% of government spending has been done by local governments which got their money partially through land sales
- Lenders to local governments are not getting paid (?)
- Larger question: Will property rights be respected? “Is it still glorious to be rich?” (Or is China getting more dictatorial/communist?)
- Technological development & innovation is still strong. Only competitor to U.S at that front
