PE, the mode of operations for China, is to make things happen fast by command.
So China has apparently had a growth rate of about seven percent for decades, ever expanding the base of the Pyramid, at the top of this Pyramid, currently sits Xi Jinping as the overloard of all China. You can keep loaning money at a fast rate as long as the GDP keeps growing but unless you gradually ease off the throttle it will all crash and burn.
Although they might have just started to gently ease the throttle, they were hit with unexpected multiple whammy.
One Whammy was Donald Trump, who had sussed them, Donald was no longer going to buy everything from China, while fat Americans sat watching daytime T.V. eating popcorn. Donald understood that America was failing. America, needed to start making things again.
With the pipeline, Donald said the Iron must be mined in America. The Coal must be mined in America. The Steel must be made in America. The Pipes must be made in America. The Pipeline enterprise must be undertaken by an American firm.
No more everything from China. Then the pandemic hit. China got off lightly with the pandemic but their customers fell by the wayside. Nobody was buying anything for a year.
So China pumps more money into infrastructure in China. Then Awareness of Global Warming strikes.
Make local, buy local, we are told, want less stuff.
Make things last.
China has primed its pumps but their economy is now melting down, with the collapse of banks, next along the road.
This is why Evergrande is on the precipice.