Looks like their economy is based on continued growth. This is a sort-of Ponzi Scheme where the income from the new marks are used to keep the old ones afloat. In China's case, they sign deals with other established corporations and then the revenues from these new deals are used to keep the older ones afloat. Easy to do when all big busuniesses are functional arms of the state. From CNN/Business:
Chinese state-owned companies are in trouble. That could hurt the global recovery
Chinese state-owned companies are starting to default on their debts. It's a problem that could ripple through the country's financial system, threatening to slam the brakes on the nation's economy and hobble the global recovery from the pandemic.
State firms defaulted on a record 40 billion yuan ($6.1 billion) worth of bonds between January and October, according to Fitch Ratings. That's about as much as the last two years combined.
The problem has only gotten worse in recent weeks. A slew of major companies — including BMW's Chinese partner Brilliance Auto Group, top smartphone chip maker Tsinghua Unigroup, and Yongcheng Coal and Electricity — declared bankruptcy or defaulted on their loans last month, sending shock waves through the nation's debt market. Bond prices have plummeted and interest rates have spiked, and the turmoil has even spilled over into the stock market, where shares of state-owned firms have been sinking.
No wonder they wanted to swing last November's election - Biden is a known quantity to them. His administration would give Bejing another four years of stability. They have suffered under President Trump - he will not let them get away with doing whatever they want. Trump has his eye on them and this makes them very uncomfortable. Good.
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