BYD's Secret Bitcoin? The"Di Chain"Bubble That's About to Burst Under Xi's Watch Digging into China

Xi Jinping's latest "good deed"? Hammering BYD's shadow empire. The EV giant's Di Chain—a homemade "BYD coin" IOU system—has been ordered to phase out, after ballooning to 400 billion yuan in off-books debt. This rogue currency squeezed suppliers with sky-high discounting (5-10%), fueling BYD's wild expansion while dodging bank scrutiny.

Why now? Risks spilled over into shadow banking; Xi favors state-owned rivals; suppliers are crumbling, sparking stability fears. BYD eyes a 1-2 year wind-down, starting with small firms via cash payouts—but absorbing 200 billion in liabilities could spike its debt ratio to 93%, inviting a supplier run.

Paths out: Bank loans, fresh profits, or cozying up to policy gods. Yet, with sales slumping and trust eroding, this "Evergrande of cars" faces karma's bite. Can it survive the purge? I'm betting no—reap what you sow.


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