The Great Fall of Communist China
China’s economy is rapidly approaching the point of no return.
By James Gorrie
5/30/2025 Updated: 5/30/2025
Commentary
China’s economy is on the edge of disaster. Macro forces are deconstructing its economic development faster than most realize or even understand.
What’s more, China’s economic fall can no longer be hidden by official statistics or claims by Chinese Communist Party (CCP) leader Xi Jinping, or fixed overnight by a decree from the sole leader of China.
The economic picture is far from promising.
Questionable GDP
For example, China’s GDP growth rates, which have been celebrated by the CCP and economists around the world as proof of the viability of the state-capitalism model, have been false for at least a decade. Even in recent years, when Europe and the United States have struggled to achieve a 2 percent growth rate, Beijing routinely reports GDP growth in the 5 percent range, as late as the first quarter of 2025.
How Is That Possible?
Consider that China’s real estate industry, which was up to 30 percent of its economy, continues to collapse. Home prices have continued to fall for more than 22 months in a row.
Europe, China’s second-largest trading partner, has flatlined. Trade with the United States, China’s largest export market, has declined since 2018, when it was 21.6 percent of total U.S. imports, down to 13.4 percent in 2024. Going forward, tariffs are likely to accelerate that decline.
In an export-led economy, if your top two trading partners are negative or neutral, where is the growth coming from?
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READ MORE: https://www.theepochtimes.com/opinion/the-great-fall-of-communist-china-5864229?ea_src=frontpage&ea_cnt=a&ea_med=opinion-6
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