The Economic Fallout: Assessing Xi Jinping's Impact on China's Finances

The economic crisis in China, characterized by a sudden downturn after decades of growth, raises questions about whether Xi Jinping's policies have bankrupted the country. While the Soviet Union collapsed due to economic stagnation, China's economic troubles are not necessarily regime-destroying. The proliferation of impressive infrastructure projects, funded by immense debt, has led to wasteful spending and underutilized assets. The immense debt mountain must be reduced for profitable investments to resume, but Xi's personal decisions, such as shutting down the private tutoring industry and suppressing the high-tech sector, have contributed to rising unemployment and economic instability. With China in deep trouble, there are concerns that Xi may be tempted to invade Taiwan to divert attention, although the theory that leaders start wars for this purpose is rare. The world will feel the impact of China's economic downturn, but it also opens up the possibility of a post-Communist China.