"China has spent billions of dollars in recent years trying to catch up to the world’s most advanced semiconductor makers.

Two foundry projects, led in part by a little-known entrepreneur then in his 30s, help show why China has yet to succeed.

The projects, in the Chinese cities of Wuhan and Jinan, were supposed to churn out semiconductors nearly as complex as the more-sophisticated chips made by industry leaders Taiwan Semiconductor Manufacturing and Samsung Electronics, which have decades of chip-building experience.

Chinese officials kicked in hundreds of millions of dollars to support the upstarts. But it quickly became clear the plans had been too ambitious, and local officials had underestimated how difficult – and costly – it is to make complex high-end chips.

The two foundries, Wuhan Hongxin Semiconductor Manufacturing and Quanxin Integrated Circuit Manufacturing (Jinan) burned through cash, yet never commercially built any chips."

https://edition.cnn.com/2021/12/15/economy/china-omicron-economy-intl-hnk/index.html

(CNN Business)China's economy is still struggling with real estate woes and fallout from sporadic Covid-19 lockdowns. Throw the global spread of the Omicron variant into the mix and it could be looking at a sharp slowdown next year.

Government data released Wednesday showed trouble spots for the world's second-largest economy in November. Residential housing prices fell for a third consecutive month, a sign that an ongoing property crisis continues to deepen. Retail sales also struggled, suggesting that coronavirus outbreaks and the government's "zero-Covid" approach of locking down areas where the virus flares up are taking their toll on the economy.
Analysts say that these problems aren't going away, as new outbreaks force companies to close factories in key manufacturing regions.
China pumps $188 billion into the economy to counter the real estate slump

"A new Covid outbreak in Zhejiang is again triggering local restrictions and factory shutdowns, while troubles in the property sector are likely to hold back property construction for some time," analysts from Capital Economics wrote in a Wednesday note.
Government efforts to ease policies and help the economy "will only cushion the resulting slowdown," they added.
After emerging from 2020 as the only major economy to record growth, China this year has been dealing with a lot of threats to continued expansion. An energy shortage hobbled industrial output for much of this year as the country struggled to balance its need for electricity with efforts to tackle the climate crisis."

Shonky,

Is this your personal "Bash China" page. I'd ask Josh Friedbrain if the Omicron virus was having any effect on the Australian economy, but poor Josh is sick in bed with the bug.

Pauliar,

The weaknesses in the Chinese economy have been apparent for nearly a decade yet this hasn't stopped economically retarded left whingers in the Gangreen and Labor parties from crowing about how fantastically well China was doing compared to the US , how China would soon be the dominant world power and we should swap our allegences.

However, after decades of pouring $Ts of borrowed money into the economy the music has stopped. Hundreds of millions are becoming unemployed with no social security or medical services, Banks have $Ts in outstanding loans that are never going to be repaid, and home owners are facing huge mortgages against properties whose values are collapsing.

30 years ago Japan went through a similar process and has yet to recover. So China is likely to struggle for a few decades before it gets on its feet again by which time its population will have aged and productivity will drop.

China is unlikely to seriously challenge the US before the late 21st century.

Shonky,

If as you say there is going to be this almighty collapse in the Chinese economy, where will that put Australia. The Morrison government with its trillion dollar debt, and nothing to show for it, its total reliance on the Chinese economy for the good of the Australian economy, where will Australia be when this happens?

Pauliar,

Firstly, you are the only one on this tread to use the word collapse.

Secondly, thanks for admitting that labor and the gangreens wouldn't pay people to stay at home during covid.

Finally, iron ore prices will drop, but only an idiot would think that Aus is totally reliant on China.