Record unemployment, companies going bankrupt, China's economy reaching the brink of destruction - Newztezz Online


Monday, August 21, 2023

Record unemployment, companies going bankrupt, China's economy reaching the brink of destruction

China's economy has become very crispy. The unemployment rate is at its peak. Real estate companies are going bankrupt. Foreign companies are investing in countries other than China.

China's huge economy is on the verge of destruction. Experts from all over the world are expressing concern about the bad condition of the Chinese economy. According to the report of The Wall Street Journal, the growth in China's economy for the last forty years is now coming to an end. WSJ says that behind China's bad condition is that economic model of China in which large scale investment was made in infrastructure, factory and construction sector but it did not yield profits.

The companies in the infrastructure sector had invested a lot by borrowing and now those companies are going bankrupt. The New York Times has also raised questions on China's economy. NYT has said that China's real estate sector is sinking and the Chinese government has not taken any measures to save it. Lakhs of properties developed by the real estate are lying vacant. No returns are being received even from the investments made by China all over the world.

Messing with the world is heavy on Jinping, tightens the dragon

China's economy was run by supplies from all over the world and investments made in China by foreign companies. China's increasing tension with America and the rest of the world is having a direct impact. Foreign companies are shifting their business from China. China is also proving unsuccessful in dealing with its domestic challenges. China's huge investments in Pakistan, Sri Lanka and African countries proved to be white elephants. Whatever was left unturned was completed with a direct confrontation with America.

The Chinese currency yuan has depreciated by seven per cent against the dollar in the last one year. According to the South China Morning Post, to save their capital, Chinese people are depositing it in Hong Kong banks or investing in American companies based in Hong Kong. In the last three months, there has been a 28-fold increase in the number of policies taken by Hong Kong's insurance companies for people living in mainland China.

Rising unemployment increased Jinping's tension

There has also been a huge increase in the unemployment rate of China. According to government statistics, the unemployment rate in China has reached 21 percent. According to a report of Peking University, in fact the figure of unemployment rate is at a very alarming level. According to the survey of Peking University, the unemployment rate has crossed 46, that is, almost every second person is unemployed. Embarrassed by this figure, Xi Jinping's government has also banned the release of unemployment rate figures in future.

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