The China Trap: When Everything Is Too Cheap to Survive

Описание: When abundance turns into a curse, victory slips away for all. China's ascent relied on relentless productivity—nonstop production lines, ever-dropping costs, and a regime staking it all on expansion. Yet that very system is now self-destructing. In this installment, we explore how China's unyielding battle for lower prices has ensnared its economy—with plummeting earnings, frozen salaries, and whole sectors plummeting toward collapse. This is the unseen toll of "Made in China": when affordability becomes a threat to existence.

• Involution (内卷) captures China's intense rivalry—ceaseless production yielding diminishing returns.

• State-supported companies have driven surplus in steel, solar panels, and electric vehicles, driving prices to rock-bottom levels that can't be maintained.

• Even with surging exports, factory profits dropped more than 20% in 2024, while paychecks remained flat.

• China encountered a parallel dilemma in the 2000s, as overproduction in steel and coal tanked prices—prompting official rescues.

• The irony: productivity without demand erodes the very profits that sustain it.

• In history, powers like Rome and Britain stumbled into identical pitfalls—plenty without equilibrium.

• Low-cost products exert worldwide deflationary forces, spreading China's downturn globally.

• The underlying narrative: how today's capitalism's fixation on expansion echoes feudal reliance—on a massive industrial level.

When a powerhouse prioritizes flawlessness, it overlooks essentials: earnings, downtime, and harmony. China's "bargain boom" is evolving into its costliest blunder.

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