The Chinese dream is turning into a nightmare

Investors and politicians have been whistling past the Chinese graveyard for far too long. The smarter observers were already warning that China’s impressive growth record may have been to some extent fabricated. The repressive Chinese government could now be in trouble, and the world could be in for a bumpy ride

China’s recent stock market meltdown isn’t the end of the Chinese miracle — that already happened.

Instead, the 30 percent plunge in stock prices in just a month — wiping out $3 trillion worth of wealth — is just more evidence that China’s high-flying days are over.

The big question is whether the Communist government can contain the stock collapse, focus on needed economic reforms and, most of all, maintain the confidence of the Chinese people.

First, a bit of perspective. The stock market rocketed up 140 percent from July 2014 to July 2015. So a 30 percent drop is a big, but not unexpected, correction.

  • Drunk_by_Noon

    How do you get a building to fall over like that and still stay together without collapsing into itself?
    It’s like they completely overbuilt the apartment (by several hundred percent) and then just forgot all about the foundation.

  • moraywatson

    The good news is that you no longer have to wait for the elevator.

  • Raymond Hietapakka

    Folks living next door must feel really secure.

    • Blacksmith

      I wonder of that is one of those empty cities that popped up in the later part of the 90’s There are a few of them that were built but nobody lives in them.

      • lolwut?

        They’re still building them.

        • Barbara

          ….and taking over Canada’s Bombadier to build them…or not build them. Not good for us.

      • Norman_In_New_York

        The Chinese also built the world’s fastest railroad trains with no passengers to ride them.

      • Drunk_by_Noon

        Most of those ghost cities do not even have the utility infrastructure to support full occupancy even if the Chinese decided to live in them.

  • tom_billesley

    Paying the price of rapid industrialization.

    After three decades of growth, the world’s biggest country, China, faces a major challenge of dealing with environmental damage.
    It is estimated that 20% of China’s arable land is polluted with heavy metals, with 90% of groundwater said to be contaminated.

  • downunder sinologist

    China is still way better than the USA. Because its leaders want the prosperity and welfare of the people (of course some are corrupt like everywhere). What do US leaders want?

    • Drunk_by_Noon

      I have an idea.
      Let’s compare how many Chinese illegals sneak into America vs how many Americans attempt to illegally immigrate to China.

    • MG42

      Hopefully, buildings with appreciably stronger foundations.

    • Norman_In_New_York

      Chinese leaders were raised on the doctrines of planned economies. They are incapable of dealing with free markets, which is why China is seeing more bubbles than a soapy bath.

    • Billy Bob Thornton

      There is no such thing as free markets. It has been seen in history that planned economies that are mixed have greater chance of reaching full employment than free market ones. Reagan simply inherited a nation that had lots of manufacturing and simply wanted the service added to it and then with the free trade agreements sold out America. Every president since Reagan has systematically sold out to corporate interests and now the US is hollowed out to corporations and special interests. The US has 90 million people out of work due to Bush’s financial crisis which he presided over and Obama has continued the same tired and old Reaganomics of low interest rates, free trade and Bush tax cuts.

    • Billy Bob Thornton

      If free trade means free markets, then the free market sounds fairly close to corporatism, because it has led to massive corporatization of the US economy, with the hollowing out of the economy, by jobs leaving overseas during the Bush years. I mean the US has less safety nets than under Carter and Nixon. The US has sold out its manufacturing because of the trade agreements. Think about it. It is all just a race to the bottom. Taxes couldn’t be lower for small business, yet they are not investing. There are no small businesses like there were in the 70’s. They cannot compete with large corporations. They were regular and common before Reaganism. The system is corporately run. The political system is an oligarchy. What else can be said other than this?! China and Russia are more capitalism than the USA. The US has been anti-capitalist since the late 90’s/early 2000’s with end of Glass-Stegal which both parties wanted abolished and it has not been brought back since.

      • Minicapt

        You neglect to discuss the aliens among us, as Mr Hellyer has instructed you.


    • To trade with China where people are kicked out of their homes before they are bulldozed.

  • Norman_In_New_York

    Whenever the stock market had one of these “corrections,” my late father used to say that it was time to shear the sheep.

  • simus1

    New townhouse complex suddenly made available to qualified buyers!
    Apply now before they are all sold out!