China in Turmoil - Joe Blogs

[TexasTowelie]

China’s corporate sector is in deep trouble.

According to Bloomberg, more than 25% of listed companies were loss-making at the end of 2024 — but new data suggests that number may now exceed 50% as conditions deteriorate. Smaller, non-listed businesses are being hit even harder, with many unable to survive without new credit or state support.

Even more worrying is the surge in so-called “zombie companies” — firms that can’t earn enough profit to even pay the interest on their debts. Bloomberg estimates that 35% of listed Chinese companies fall into this category, and that figure is likely rising fast.

In this video, I break down how China’s economic slowdown, weak demand, and mounting debt burden have created a corporate landscape filled with loss-making, debt-laden firms — and why this could be the biggest long-term threat to China’s entire economy.

📉 In this video:

• How many Chinese companies are now losing money
• What “zombie companies” are and why they’re rising
• Why debt and deflation are destroying profitability
• How Beijing’s stimulus is keeping dead firms alive

Chapters:
0:00 Intro
0:09 EXPORTS
1:50 IMPORTS
2:51 PRODUCER PRICES
5:21 INFLATION
6:47 RETAIL SALES
7:28 GDP
9:36 SUMMARY & CONCLUSION