Translated by: MOS Education Team – Marco Polo
On September 23, the New York Times issued a warning that other than Evergrande’s crisis, the CCP Regime’s economy still has a lot of troubles. Being influenced by a slowdown in car sales, Communist China’s retail sales were much weaker than expected last month. Industrial production, especially the production of large freight trucks, has slackened. Huge government spending on new rail lines, highways, and other projects is keeping the economy afloat right now but may not be sustainable through next year.
Earlier this month, the China Association of Automobile Manufacturers (CAAM) disclosed that heavy truck’s production and sales have plummeted by nearly half in August compared to the same month last year. The nosedive in freight truck production and sales not only reflected the loss of economic confidence but also showed how CCP’s policies over the past few years temporarily inflated demands, which caused severe excess production capacity. Car sales were also fatigued and weak last month.
The auto industry is one of the biggest industries of Communist China, whose proportion in economy only comes after construction and government expenditures. The auto industry also plays nearly three times as large a role as exports to the United States. In addition, an acute shortage of computer chips has separately affected the production and sale of cars in the CCP Regime.
The Domino effect of Evergrande’s crisis is spreading, and the Lehman Moment for CCP is coming.
Proofread by: Amy Q
Edited by: Amy Q
Posted by: Amy Q
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