The entire Chinese banking system is essentially bankrupt.
Chinese companies are forced to accept suboptimal business decisions to further CCP goals.
In spite of the incredible inventiveness of the Chinese people, companies in China outside of PCB-level board assembly are weak and uncompetitive, having been the beneficiaries of government protectionism (how many countries use Baidu for example).
Except for a video-sharing website for teenage girls.
And a network switch manufacturer that is subsidized and owned by the government.
And the population is getting old before it gets rich, with no social safety net.
What does fiat currency even mean in a closed society? Is China solvent or not? What can we say about government debt when private banks are forced to make bad loans at the government’s request? And what can lenders expect back when the government doesn’t respect private property?