China’s Down And (Trade) War Is Closing In

“A trade pact, if it happens, may soothe investors, and perhaps even juice economic growth—at least temporarily.  But it won’t bring an end to China’s woes.  While tariffs are a nuisance, the real problems run deeper, embedded in China’s financial structure. “What goes widely unnoticed is that China is already in crisis.  No, it’s not the sort of hold-on-for-dear-life collapse the U.S. had in 2008 or the surprising, ferocious meltdowns the Asian Tiger economies experienced in 1997.  Nonetheless, it’s a crisis, complete with gutted banks, bankrupt companies, and state bailouts.  Since the Chinese distinguish their model of state capitalism as ‘socialism with Chinese characteristics,’ let’s call this a ‘financial crisis with Chinese attributes.’