Chinese manufacturing overcapacity is flooding global markets with cheap exports, distorting world trade. Years of erratic and irresponsible policies, excessive Communist Party control have created a dead-end economy in China with weak domestic consumer demand and slowing growth.
The root of the problem lies in the Communist Party's excessive control of the economy, baking into China's political system and worsening under President Xi Jinping's rule. Reforms that empower the private sector and consumers are essential yet deemed unacceptable.
China faces unsustainable reliance on exporting due to government-mandated strategies like building more industrial capacity. Economists advocate for freeing up the private sector and encouraging consumer spending, which conflicts with China's current governance.
The Communist Party missed opportunities for economic reforms in the past, like in 1989 during the Tiananmen Square protests. Liberalizing government institutions to accommodate economic changes would have undermined its power, preventing necessary transformations.
#chinese-manufacturing #global-trade #communist-party-control #economic-reforms #government-intervention
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