[sgbuffett]

China maybe the next black swam of DOW crash..

But China got huge reserve i think like 3T.. dont knw yuan or USD..

maybe can use that to give more stimulus,., that depend on CCP Xi..

3T is foreign reserves. But based on China import and export they need to keep 2T for normal trading activities. This gives them excess reserves of 1T which they can use to defend the Yuan.

To stimulate the economy they don't need reserves as they have currency controls they can just QE aka print money. They retain this option by imposing currency control on the entire population. ..each person van only take out US$50K out of China per year.

While various options are available for China, Xi does not use it because he is dogmatic and wants restructuring done even if the people suffer. Just like zero covid he delayed the correct decisions as the people suffer ...and act when people protest and country is unstable. This seems to be his style of leadership. When he ban private tuition overnight millions lost their jobs but it is no concern to him. 
 

When he take action to damage tech companies like Alibaba and Tencent which were the most valuable, he seem unconcerned about causing losses to investors ...now they avoid China and money flow out of China. These companies had to retrench people and many high paying jobs were lost but he doesn't care.

Xi also like to poke the eyes of western powers...when they act against him, the Chinese foreign ministry will whine. China threaten to break the US dollar hegemony with BRICs and dedollarisation, he expects the west to sit around and not retaliate.? The hedge funds and soros gang plunged the Yuan to 16yr lows to teach China a lesson. Chinese Yuan fell faster than Thai Baht during Asian Crisis.

Studying policies of Xi, he does not seem to understand that actions have consequences. His nationalistic sabre rattling in South Chjna seas caused many countries to form alliance against China include AkUS and now the Asian NATO - US Korea and Japan.

My honest conclusion is Xi is not a wise leader. He has led the country to both economic and geographical troubles.
Under him the image of China has declined

His preoccupation to consolidate his own power and extending his rule beyond term limit is harmful to China not only are his policies bad, he is in power to persist the bad policies for long time.

There are many fanboys will will keep cheering Xi as things get worse. But in reality he is not a good leader