Monday, November 02, 2026
May end like President Liu Shaoqi.
"For much of the past year, India-China relations appeared to be on a cautious path to recovery." But recently, Shatrujeet Singh Kapur, director general of the Indo-Tibetan Border Police (ITBP) said that face-offs between Indian and Chinese troops had taken place "in the north-eastern state of Arunachal Pradesh and were continuing." The Chinese came in large numbers and pitched tents "around six-to-seven kilometers inside India's perception of the actual Line of Control (LAC)." BBC. 'Shatrujeet' means 'victory over the enemy', and truth is an effective weapon. China wants to grow its economy at any cost to surpass the US by 2035. To achieve that, "Beijing has been over overinvesting for years, but lately, it has been dumping the excess output it can't sell at home." It has"dropped export prices nearly 20%, producing a 40% surge in volume." Last year its trade surplus rose 20% to a record $1.2 trillion, "And at 340% of GDP, China's total debts are higher than any other emerging economy's, by far," wrote Ruchir Sharma. "In its latest annual review, the World Bank set the high-income threshold at a gross national income (GNI) per capita of more than $14,375 a year. China fell just short. Its Atlas-method GNI per capita for 2025 was $14,230." But China insists on being described as "world's largest developing country". Because they do not want to pay for developing other countries. NDTV. China's economy peaked in 2021. "Since then, China's share of global GDP has fallen in nominal terms from 18% to 16.5%, while the US share has risen to 26%." Its growth is closer to zero "than to the official target of 4.5-5%," and "AI is just not providing a big enough lift to overcome other forces weighing on China, including its shrinking workforce, rising indebtedness, a bust property market, revival of a meddlesome regulatory state, and the resulting exodus of capital and people," wrote Sharma. Maybe that is why, "Pessimism has gripped Chinese stocks, with no end in sight for a deepening selloff," as "The world's second-largest equities market has lost $3.5 trillion in value from a peak in May, data compiled by Bloomberg show." "At the heart of investor gloom is an unsettling realization that protracted consumption slump and the race-to-the-bottom mentality among businesses is taking a heavier toll on earnings across industries from banks to electric car makers and AI model developers." NDTV. "China's industrial growth slowed further in August," as "Firms are increasingly struggling to maintain pricing power due to soft consumption and excess capacity in some sectors. Factories are relying on overseas markets for better profits, a shift that risks deepening China's reliance on exports at a time of heightened geopolitical tensions and greater scrutiny of its trade surplus." Reuters. Other countries are looking for ways to restrict Chinese imports to protect their own industries. "Chinese leader Xi Jinping, intent on pouring trillions into making China a technological and military superpower," so that, "China's credit to the non-financial sector - a broad measure of corporate, government and household borrowings - topped 300% of GDP." "It has jumped by more than $43 trillion since Xi took office in late 2012, according to the Bank for International Settlements." WSJ. "A brutal season has arrived in China's car market, among the most troubled in the world." "The needed shakeout, however, isn't happening yet," as "The growth model that powers the industry's swift rise is making it hard to hit the brakes now that times have turned bad." WSJ. "China's retail inflation remained close to zero or negative for much of 2025, even as other big economies continued to see positive inflation." "China's weak domestic demand is increasingly being offset by exports, raising the risk that its deflationary forces will spread globally," wrote PK Arora & Joydeep Mukherjee. That will affect global GDP growth. Xi Jinping has been arresting anyone he thinks may oppose him (BBC) and, while that may give him a temporary sense of security, his enemies are only multiplying. He must be very familiar with the gruesome end of President Liu Shaoqi (wikipedia). A civil war in China would be welcome. A celebration.
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