The death knell is ringing. Is China's new energy vehicle financial bubble about to explode?

The death knell is ringing. Is China's new energy vehicle financial bubble about to explode? Forcing depositors onto the streets. China's biggest state-owned banks have turned their backs on the people. Ten strange things about Xi's meeting with Lukashenko. The death knell is ringing. Is China's new energy vehicle financial bubble about to explode? Who is the biggest auto company in the universe? Everyone knows the name, so there's no need to repeat it. It's that one company investors worship, media hypes up, and fans idolize. But behind the spotlight, something ugly is brewing. Look closely. Not at the headlines, but at the numbers, and you'll see a ticking time bomb. In 2020, this company's debt was 136.6 billion yuan. By April 2025, that number had exploded to nearly 700 billion. That's a five-fold increase in just four years. It's not growth, it's over-leveraged gambling. While the world praises its innovation, it's quietly sinking in a sea of debt. Its debt is now six times its net assets. That means for every one yuan of value, it owes six yuan. What kind of business model is this? How can a company with 100 billion in assets afford to owe 700 billion? The answer? It can't. Not without playing financial games. Let's break it down. How is this even possible? The truth is, these new energy car makers have turned financing into a money printing machine. They don't build wealth by selling cars. They build stories to raise funds. It's all smoke and mirrors. A real business needs profits. This one just needs hype. The game begins with land. Wherever a local government offers free land, they rush in to build a factory. But the construction money doesn't come from their pockets. They convince a contractor to pre-finance the project, then use the half-built site as collateral to get a bank loan. And with that loan money? They lease equipment. Nothing is bought outright. Equipment is purchased by a third party, installed, then leased back to the car company. Often, that third party is secretly just another company under the same owner. Fake arm's-length transactions are everywhere. How do you spot the trick? Check the lease prices. If it's way above market rate, the scam is obvious. It's a method to extract money while looking legit. They aren't building a business. They're building a house of cards, propped up by loans, inflated asset values, and financial gymnastics. Now, they need car parts. But they don't pay up front. Suppliers deliver on credit. Some wait six months. Others wait a year. If suppliers want faster cash, they're handed commercial bills, basically IOUs. If they're desperate, they sell those at a loss or rely on third-party financing, often tied to the car company itself. Why do suppliers accept this? They're trapped. In a brutally competitive market, saying no means losing clients. The pressure forces them into debt, while the car company keeps scaling. This isn't cooperation. It's a parasitic relationship, where the carmaker extracts value from every layer around it. Government subsidies used to soften the blow. But now, the funds are drying up and dispersed more slowly. Upstream suppliers are suffocating. Downstream retailers are barely hanging on. Yet the car companies keep pushing production, chasing volume, not to sell cars, but to keep the illusion of growth alive. Forcing depositors onto the streets. China's biggest state-owned banks have turned their backs on the people. Since 2023, China's major state-owned banks have been slashing deposit interest rates at an alarming pace. Take three-year fixed deposits. Once at 3.05%, they've now plunged to just 1.9%. This has crushed the savings income of millions. The hardest hit? Seniors and those who rely on interest to survive. For them, it's not just a cut. It's a lifeline severed. Why the relentless interest rate cuts? Three key reasons. One, the central bank wants to flush cash out of savings accounts to push people toward spending and investing, hoping it'll jumpstart the sluggish real economy. Two, loan demand has dried up. By cutting rates, the central bank aims to lower borrowing costs and breathe life back into the lending market. Three, a wider gap between loan and deposit rates boosts bank profits and supposedly strengthens their defenses against financial shocks. With deposits in chaos, financial experts are sounding the alarm. These four groups should be on high alert. First, people chasing high interest rates. Second, those who lock money into long-term deposits. Third, people keeping cash in current accounts. Fourth, anyone holding more than 500,000 Here's why. First, depositors chasing high interest rates. Watch out. Many are fleeing to small and mid-sized banks offering 2.7% rates, lured by better returns, after big banks dropped below 2%. But the hunt for high interest hides a dangerous trap. These smaller banks take on risky, high-return projects to keep up with their promises. But if those loans go bad, your money could vanish. Chasing higher returns may come at the cost of your deposit's safety. Second, depositors who prefer locking money into long-term deposits. Many depositors still flock to three-year or five-year fixed deposits, hoping for higher returns and the security of locked-in rates amid a downward trend. But this safe strategy hides two major risks that could cost you dearly. First, if all your money is tied up in long-term deposits, you're trapped when a financial emergency strikes. There's no quick access. Second, you're frozen out of better opportunities that may appear during that time. A smarter strategy? Opt for one- to two-year deposits to maintain flexibility while still earning decent returns. Third, people who stash their cash in current accounts. A lot of people park their money in current accounts just for convenience. Quick transfers, instant payments. But there's a hidden price. The interest rate is insultingly low. Keep 10,000 yuan in a current account, and you'll earn just 5 yuan in a year. That's not saving. That's losing. To avoid this pitfall, don't let too much money sit idle in your current account. If you need liquidity, choose a three-month or half-year fixed deposit instead. Even short-term deposits can offer far better returns while keeping your money within reach. Fourth, depositors with more than 500,000 yuan in a single bank. With bankruptcies and closures of small banks rising fast, those who have more than 500,000 yuan in a single account are gambling with fate. Why? Because once a bank collapses, only deposits under 500,000 yuan are guaranteed. Anything above? You're on your own. Smart savers don't keep all their eggs in one basket. Spread your deposits across several banks to keep all your money safe, even if the worst happens. Don't wait until it's too late to protect your financial future. The banking world in China is shifting beneath our feet. Deposit rates are plunging to historic lows, and they're still falling. Meanwhile, more small and mid-sized banks are collapsing. If you fall into any of these four groups, it's time to rethink your strategy. Don't just worry about shrinking returns. Start protecting yourself from what's coming next. 10 strange things about Xi's meeting with Lukashenko. After 14 days of disappearance, Xi Jinping met with Belarusian President Lukashenko in Zhongnanhai on June 4. Belarusian media reported Lukashenko called the visit a family gathering in a small circle, neither formal nor work-related. Deputy Prime Minister Nikolai Snopkov also described it as a family-friendly lunch and the visit's main purpose. In short, the visit was a private, small-scale meeting with Xi Jinping, not a state or official visit. However, there are at least 10 strange things about this meeting. This was Lukashenko's visit to China after his 7th presidential election on January 27, 2025. Normally, such a visit would be formal, with official ceremonies and talks. Instead, Xi skipped formal welcome, talks and banquet. Lukashenko arrived on June 2 but only met Xi on June 4, the last day, which is unusual. Lukashenko said Xi invited him to his home, but no meeting with Xi's family, including his wife, was reported. Xi met Lukashenko at Chunyi Zhai in Zhongnanhai, not at Yingtai, the traditional meeting place used for Obama and Putin. Chinese media coverage was very brief and lacked the detailed reports and videos typical of high-level visits. The meeting produced no new agreements or joint statements, only formal and empty remarks from both sides. Belarusian media said Xi invited Lukashenko to the Shanghai Cooperation Organization summit and military parade later this year, but Chinese media did not mention this. Lukashenko did not meet other top Chinese leaders except Xi and Foreign Minister Wang Yi. Notably, Kai Qi, who attended Putin's 2024 visit, was absent. China did not announce Lukashenko's visit in advance and remained silent about his activities until the last day. Photos of the meeting were posted hours after the initial news, which is unusual. Why did Lukashenko make this three-day visit with no substantial outcome? President Lukashenko, a close ally of Putin, was sent to check whether Xi still holds real power amid rumors of his weakening position. The quiet and unusual arrangements likely revealed Xi's current status to Lukashenko. Based on the ten strange details of Xi's meeting with Lukashenko, it seems the rumors are true. Xi appears in power but actually has lost control. CCP veterans like Wen Jiabao and Zhang Yuqia are now the real influencers behind China's politics, with Xi merely following the CCP's scripted role. Factories Shuttered, Dreams Shattered, Inside China's Mass Unemployment Wave Mainland China is at a crossroads, with international corporations leaving the Chinese market one by one, companies and factories shutting down en masse, and widespread unemployment. Things are worsening as the new year approaches. In this wave of unemployment, anyone could be the next unfortunate person dragged down. The current wave of unemployment is not just a simple economic fluctuation, but a profound social earthquake. What is the current unemployment rate in China? Some time ago, the community committee called me and asked if I was at home. I was confused, but she said she would come to my house to conduct a survey. I asked her what it was about. She said she came to verify whether I was working, whether I had a stable income, and how much I earned to compile statistics. Since they called me in advance to schedule an appointment, I was surprised and asked if they would verify this with every household. She said that two households in each building in a community were randomly selected, and one of them happened to be mine. The reason is amusing. She thought that, as a young person, I would likely have a job making the process easier to handle. What does easier to handle even mean? Do they just want to count groups of people who are highly employable? Now you understand how accurate the statistical unemployment rate might be. I found the unemployment figures provided by the CCP government to be completely false. Later, I made the appointment, and two comrades came to ask about my income. I said it wasn't much, and then they decided to fill in 3,000 yuan. Well, that's quite detailed. When they left, they gave me a supermarket voucher worth 20 yuan about 2.8 US dollars, and asked me to take a photo with it, saying they would upload it to their system. So I was quite lucky because I got an extra 20 yuan voucher. This practice, to some extent, reflects the commercialization of interactions between people in modern society. Behind this unemployment rate lies the self-awareness of each family and the simplified digital economy. When unemployment rate statistics become a formality, the expectation of authenticity may rest only on the 20 yuan voucher. What we are facing now is no longer just the difficulty of finding a job, but the crisis of an education system entirely out of touch with modern society. In other words, today's school education still uses methods from the last century to teach students of this century and prepare them for the world of the next century. It's like using an expired map to navigate east, west, north, and south. The result is bound to be disorientation. What students learn in school today is often outdated by the time they graduate, or even before they graduate. In this case, how can they find a foothold in society? What's worse is that current education still uses the same standard to measure all children. No matter what your interests or dreams are, they are all forced into the same mold. The CCP has used an educational model to brainwash people from childhood to adulthood. Yates once said, Education is not filling a bucket but lighting a fire. Only by breaking this mold can the sparks of thought burst freely in every corner. The unemployment wave itself is not terrifying. What's terrifying is thinking you can escape it by muddling through, unaware that the times have already left you behind. Perhaps you can't stop the tides rise and fall, but you can ensure you are not the empty shell washed ashore. Friends, I feel really bad right now. I had another quarrel with my wife last night. We were originally discussing whether to actually sell the house. Then we talked about the issues with my original family, and that led to a quarrel. In fact, I feel really bad. When I coaxed my son to sleep last night, I cried while telling him a story. I feel like a failure. I have been in Beijing for more than 10 years. When I was young, I was full of vigor and vitality. I wanted to achieve something and provide a good life for my wife and children in the future. But now, I don't have a good life, and I still owe a lot of foreign debt. The blogger said that sometimes he understands why his wife quarrels with him. From her perspective, as a husband and the head of the family, he should have been the one supporting them. But now, not only does he fail to do that, but many things still require his wife to manage. In recent years, his mother-in-law and father-in-law have helped them a lot, not only by taking care of the children, but also by providing financial support. He was especially grateful because he was not an ungrateful person. I also wanted to become independent earlier and not let them worry about me, but I haven't managed to do it yet. Looking back, I have been in Beijing for more than 10 years. My youth and career are gone, and now even my home may be gone. I don't know whether Beijing is worth staying in or if there is any meaning in staying. But if I leave Beijing, where can I go? My hometown has not developed at all. Go to my wife's hometown? Farm? It may not be realistic. And sometimes, deep down, I feel very unwilling. I can't believe that in such a big city like Beijing, there is no place for me to stay. Do I really have no way to take root and establish myself here through my own efforts? But now, now I am also confused. Should I leave or stay? I am a programmer at a large internet company. I have been with the company for almost 14 years. This layoff was actually within my expectations, and I received N plus 1 compensation. Since I started working, I have been working overtime every day. On top of that, I have very poor sleep, my body has been severely overworked, and I have undergone two cancer operations. In fact, I think that being able to persist until now, for the sake of my career, has been an achievement in itself. At present, she has sold her house in Beijing, and is about to end her 18 years of drifting in Beijing to return to Shandong. I've finally made it. I've been waiting for so long. But I still feel sad when I think about leaving. When I think about everything I've experienced in the past 18 years, I feel a My husband and I will end our life in Beijing and return to our hometown today. This time, I may never come to Beijing again. I was only 24 when I came here, and now I'm 35. As long as you have been to Beijing, you will feel extremely happy no matter where you go. I'm tired of Beijing. I'm really tired of Beijing. Why do people choose such a difficult way of life for themselves? China's current economic situation can be said to be worse than before. Many Chinese men can no longer afford family expenses. According to a survey by CICC, among the 1.4 billion people in the country, only 700,000 earn a monthly salary of more than 20,000 yuan. The so-called labor support rate refers to how many people an adult can support. So what does this data mean? Simply put, the income of many Chinese men is no longer enough to cover family expenses. And this issue is not an exaggeration. The data is indeed accurate. In the United States, the labor support ratio is about 4.8, meaning one adult can support 4.8 people. That's why you see many American families with full-time housewives and multiple children. In Japan and South Korea, this indicator is also 3.8, meaning one adult can support 3 to 4 people. What about China? Our labor support ratio is 1 to 1, which means one adult can only support themselves. In other words, it is almost impossible for a wife to be a full-time housewife and raise a child. This year, at the end of the year, some abnormal events, some things will suddenly happen. I feel that there will be more. The blogger said that at the end of the year, events such as creditors demanding debts and bosses running away often break out in a concentrated manner. He suggested that if you owe someone money, in previous years, you might have been able to argue. But this year, try to pay as much as possible, safety first. Don't be the last straw that breaks the camel's back. Zhejiang garment factories facing wave of closures, bosses, say this year is really difficult. The economy in mainland China is deteriorating, and small and micro enterprises are suffering even more. Recently, it was revealed online that 26 garment factory bosses in Zhukang town, Zhejiang province, fled in just one month. Industry insiders lament that businesses cannot see a future, and the situation is grim. On December 2nd, several villages in Sukhuntown, Haining, Jiaxing, Zhejiang province, were reported to have experienced garment factory closures, with bosses fleeing and employees being owed wages. Some netizens claimed that 26 garment factory bosses in Sukhuntown had run away. The garment factory market is struggling. They were still in production last night, but today, the bosses have disappeared, one remarked. Other factory partners noted that many factories are closing, bosses can't pay wages and flee, and some desperate employees are even threatening to jump off buildings. Mr. Xiao, who formerly ran a clothing factory in Jiaxing, Zhejiang, told the Epoch Times, it is extremely costly to maintain a small factory, especially in the low-profit manufacturing industry. Every winter and summer, the government imposes power restrictions, forcing us to take holidays. If we cannot process orders when they come in, we suffer losses. I constantly worry about paying wages and rely on operating loans to survive. The rent will increase next year, and the company can't see any future, he added. Some bosses have no money to pay wages, so they run away. Many are suffering from depression. Data reveals that in the first half of 2023, the clothing industry led all sectors in store closures, with 1,831 stores shutting down. Additionally, 1.233 million clothing-related companies were deregistered in China during this period, marking a 41.5% year-on-year increase. Dong Zhentao, a former clothing business owner in Yiwu, Zhejiang, shared with the Epoch Times, In the past, we processed materials for foreign companies, and they paid us on time. After the pandemic, many foreign-funded factories moved to Southeast Asian countries like Vietnam and Malaysia. Additionally, the United States increased tariffs, which severely restricted the export of Chinese-made products. Most cannot be exported and are forced to be sold domestically. Clothing is unsaleable. Products cannot be sold, and funds cannot be recovered, leading to broken capital chains. Some factories even advance their own funds to keep operations running, but when companies fail to pay them, the funds remain unrecovered. The bosses then have no money to pay workers' wages and are left with no choice but to flee.