What accounts for a 40% collapse? That's an enormous shortfall for such a large economy.
- CHIP act in mid 2022 from Biden that spurred Apple to finally drag its immoral lazy feet
- Russia invasion of Ukraine, and Chinese proclamation of friendship with no limits shortly after
- covid lockdowns in China in early 2022 that shut down factories
- increasing electric rationing every year in China that shut down factories
- Foxconn factory riots
- very loud geopolitical risks that C level execs can no longer pretend not to hear
- can't move money out of China. 'I can't get my money out': Billionaire investor Mark Mobius says China is restricting flows of capital out of the country. https://markets.businessinsider.com/news/stocks/mark-mobius-...
This has been true for 10+ years
Whatever the US is doing with sanctions is still much looser than China's controls on capital, and they've made it an explicit point that they would rather keep capital controls and the ability to suddenly put in even more draconian ones, than to become a global reserve currency.