China Enters the Doom Loop

by Peter St. Onge SHTF Plan

This article was originally published by Peter St. Onge at The Mises Institute.

China’s authoritarian gerontocracy has built a Doom Loop with Chinese characteristics, with over half the economy now crashing.

Chinese exports are now plunging at the fastest pace since the covid lockdowns: Exports fell 14.5% on the year, driven by a 21% drop in exports to Europe and a 23% drop to the US.

Meanwhile, imports to China are also falling — 12.4% on the year — as shrinking manufacturing buys fewer inputs and households buy less.

In short, foreigners aren’t buying, and the Chinese aren’t spending either.