Why does most of the media still believe that China will crash, even if they shouted for twenty years?
Joseph Wang, studied at Ph.D Astronomy UT Austin, Physics MIT
Answered Aug 2
Because the purpose of the news media is to make money, and “China will crash” is a reliable way of getting readers. Also it’s funny, because when China isn’t crashing then it’s going to take over the world.
The other thing is that a lot of the news media is a marketing channel for hedge funds and academics who need to promote their new book, or consulting service or otherwise need to push their careers.
The other thing is that Chinese politicians have gotten very good at using the Western news media to push their agendas. If you want China to follow some sort of policy, it used to be useful to have the Economist or NYT talk about it, because it got attention in Beijing, but that’s no longer the situation.
It’s also worth noting that the Western press is no longer nearly as powerful as it once was. Back in the 1990’s, the Western media had a lot of power controlling information to policy makers. I’ve stopped reading the Economist or New York Times or Washington Post for news, because they really don’t provide any particularly good insight or even raw news. However, because the press has a lot less power, this makes it more important for them to be sensationalistic.
It’s also funny because it turns out that what gets printed is not necessarily what gets written by the reporters.
Greg Spolar, lived in China (2008-2017)
Answered Jul 26
I lived in China for nine years. For the entire time western media predicted the crash was imminent. Mysteriously, it never happened. Sure, there were people and businesses that faced difficulties, but overall the economy continued to make progress.
I've concluded that the reason western media keep predicting China will crash is that they don't understand the culture, policies and lifestyles of Chinese people and government.
For instance, the so-called “ghost cities", huge, unfilled developments have been touted as an example of government and industry overreach. Western media doesn't realize Chinese will buy new apartments as an investment to hold for five or ten years the sell it, unfinished at a nice profit. Today, many of the old ghost cities are filing up.
Another thing westerners don't understand is Chinese frugality and propensity for saving. The Chinese economy isn't built on consumerism So when business slows (as it did in 2015), Chinese don't cut back as much on spending because they still need the same things they did before- food, clothing, shelter. Sure, some “entertainment” businesses closed, but that was also because of a government crackdown on graft and corruption and another on the sex trade.
Finally, Chinese families treat financial resources far more communaly than in the west. If someone loses a job, he probably has money in the bank to sustain himself and relatives willing to contribute should the need arise.
I soon learned to ignore western media's lies and ignorance about China.