Losses are piling up at Chinese firms even as exports surge. Local governments regularly prop up unprofitable enterprises to preserve employment and meet economic targets. This has had a perverse effect throughout the country. An economic program that was meant to make China stronger and more independent has in fact made it more vulnerable to the policies of other countries.
fredag 23. oktober 2026
China’s Economy Has a Huge Weakness
As China’s manufacturers flood the global market with cars, chips, and just about everything else, the country’s economic juggernaut seems unstoppable. Policy makers in the United States and elsewhere fret that this onslaught will overrun their own industries, destroy jobs, and leave them reliant on a rival for vital products. But a growing number of Chinese factories are failing to produce at least one crucial thing: a profit. According to the London-based research firm Capital Economics, the share of Chinese industrial firms that are losing money has doubled since 2018 to 30 percent this year.
Losses are piling up at Chinese firms even as exports surge. Local governments regularly prop up unprofitable enterprises to preserve employment and meet economic targets. This has had a perverse effect throughout the country. An economic program that was meant to make China stronger and more independent has in fact made it more vulnerable to the policies of other countries.
Losses are piling up at Chinese firms even as exports surge. Local governments regularly prop up unprofitable enterprises to preserve employment and meet economic targets. This has had a perverse effect throughout the country. An economic program that was meant to make China stronger and more independent has in fact made it more vulnerable to the policies of other countries.