https://www.gatestoneinstitute.org/19948/china-21st-century
[T]he news of the week is most likely the crash of China. Real estate, currency, stock markets, technology, demographics: it all fits together, and what lies ahead for China looks like stagnation at best.
There are an estimated 80 million unoccupied homes in China — a huge number, even for a giant country. While real estate has driven China’s growth for decades, it is now in danger of wrecking it.
Then came the marginalization of the Chinese currency, the yuan, presented as destined to replace the dollar. Not quite yet. The yuan may or may not be weak, but above all no one wants it as an international currency because no one trusts the reliability of the Chinese regime in the long run. No one wants to buy Chinese bonds.
“It is very hard to create a reserve currency, without attractive reserve assets. China has a problem. It wants foreigners to buy bonds but they have been selling since early 2022” — Jens Nordvig, founder and CEO of Exante, Reuters, May 16, 2023.
Regarding the concept of a dedicated currency for BRICS nations, experts have expressed their skepticism. Danny Bradlow from the University of Pretoria in South Africa, cast doubt on the practicality of reverting to the gold standard — there is not enough of it if everyone wanted it a redemption — or using cryptocurrencies. He questioned their reliability in global trade. There are serious investors who regard cryptocurrencies as essentially a conceit, like the 17th century’s Dutch tulip mania. Even then, at least you had a tulip bulb.
Chris Weafer, an investment analyst specializing in Russia and Eurasia at Macro-Advisory, labeled the proposition of a BRICS currency a “non-starter.”
It is likely that Chinese Communist Party Chairman Xi Jinping does not really understand how markets work… Why would anyone want to invest in a stock market that is constantly at the mercy of a communist ‘Prince’ and his subjective whims and predilections?
According to China’s new “Anti-Sanctions Law,” just about anything can be a crime, and one’s assets seized if the Communist Party leaders want them to be. The raid on the Shanghai headquarters of Bain & Company and the colonization (seizure) of the Hong Kong financial center by China’s imperialists also had the effect, from a strictly financial point of view, of emptying the Chinese market of all reliability.
There is also the problem that in China there are no private companies: under the Chinese Communist Party’s notion of “civil-military fusion,” all companies belong to the central government and can be raided for information at any time.