In early August, the IMF’s 2024 assessment of China recommended deploying fiscal resources to complete unfinished housing projects and ease public burdens, estimating the cost at nearly $1 trillion. China’s response rejected this suggestion, citing concerns about creating expectations for government aid and potential moral hazards. The Communist Party views public funds as its own and is unwilling to provide direct relief, reflecting a master-servant attitude toward its citizens. This stance reveals the Party’s reluctance to genuinely address domestic demand issues, focusing instead on investment in manufacturing and high-tech sectors. Despite claims of promoting domestic consumption, substantial credit continues to flow away from residential loans. Historically, such inaction might have led to revolts, but modern surveillance tools help suppress dissent, highlighting the Party's disconnect from real public needs.

Connect with me:

Email: [email protected]

Support through PayPal: https://paypal.me/DonXiang