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this post was submitted on 19 Mar 2024
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Except that the Chinese national government is trying to reign in the domestic construction market and export as much as it can.
It was the right strategy to keep building for a generation, but it isn't right strategy any more.
I've read that they're trying to lessen the share of the GDP but an uncontrolled crash would still be horrible. Hopefully whatever they do that is avoided.
It is more than that. China significantly invested in infrastructure for a generation, which was generally good. However, China has hit a point where infrastructure investment won't produce the returns it used to or any at all. China also needs to figure out a way to find municipal governments, which it hasn't before. China also has to deal with a significant drop in economic growth, something it hasn't dealt with for a generation.
These are novel problems for the Chinese government.