It's no secret that after the Kovid pandemic, China's economy has been hit pretty hard. Further problems were a continuation of the economic confrontation with the U.S., which was not a smart move on China's part, as overestimating its strength is the biggest mistake.
Then there was (and now the problem continues) Evergrande and in general the real estate market and related sectors of the economy....
And the day before yesterday the news came out: China is considering the option of withdrawing 2 trillion yuan ($278 billion) from offshore accounts of state-owned companies to save the record falling stock market. Bloomberg writes about it.
According to people familiar with the matter, Chinese authorities are considering a package of measures to stabilize the falling stock market after previous attempts to restore investor confidence failed and prompted Prime Minister Li Keqiang to call for "forceful" steps.
On the one hand, it seems to be the world's second economy, "the world's factory", nominally "the second pole of the bipolar world", on the other hand, it is no longer possible to hide the problems and it is necessary to take such measures. The question is: since the situation with the Chinese economy is no longer manageable, and we have to take tough and prompt actions to save the economy - how do you think this will affect the global economy, the crypto market, and what to prepare for?
Before Xi Jinpig, China had a chance - they were opening up both economically and also to people who wanted to explore the country. They relaxed massively from the devastating era of Chairman Mao, which crippled them. That is the era that brought so many people out of poverty and it had the potential to keep winning by using that strategy. However now we have a meddling dictator again, who undermines any pretense of independent law and order. That targets business sectors seemingly at random - driving away the overseas investment that helped them flourish. He allows bubbles to grow, because on paper it gave the illusion that China was even richer. He also knocked out political opposition, which ends up with the leadership living in an echo chamber that will end up in their own demise.