0 sats \ 0 replies \ @Bell_curve 10 Aug \ on: China’s manufacturers are going broke econ
I asked perplexity AI
Chinese manufacturers are facing financial struggles due to several key factors:
  1. Overcapacity and Weak Domestic Sales: Excessive investment has led to overcapacity, while domestic sales remain weak, affecting profitability[1][2].
  2. Trade Barriers: International trade barriers have further depressed profits[1].
  3. Rising Costs: Increased labor costs and soaring producer prices have made it difficult for manufacturers to absorb expenses, leading to higher consumer prices[3][4].
  4. Government Policies: Unpredictable government actions and policies, such as the "Zero COVID" policy, have disrupted manufacturing operations[3][4].
  5. Global Competition: Intense global competition, especially in sectors like electric vehicles, has limited market growth[2].
Sources [1] Feared in the West, China's Manufacturers Struggle at Home - WSJ https://www.wsj.com/world/china/feared-in-the-west-chinas-manufacturers-struggle-at-home-8a64f2c3 [2] China's manufacturers are going broke - The Economist https://www.economist.com/business/2024/08/08/chinas-manufacturers-are-going-broke [3] Why Chinese Manufacturing Is Faltering - TACNA https://tacna.net/why-chinese-manufacturing-is-faltering/ [4] China's Major Manufacturing Crisis - Why Companies Are Fleeing ... https://www.linkedin.com/pulse/chinas-major-manufacturing-crisis-why-companies-fleeing-munjal-n4udf [5] How to Know When Your China Manufacturer is Going Bankrupt https://harris-sliwoski.com/chinalawblog/how-to-know-when-your-china-manufacturer-is-going-bankrupt/
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