> But now the bubble has burst. Growth has slowed. Factories are closing, or heavily automating with world-leading levels of technical integration, cutting headcounts.

China has been suppressing domestic private consumption, it stands at just 40% of the GDP. For comparison, the US is at 68% and Germany is at 53%.

This was probably done to prevent the appearance of the true middle class. China has no problem controlling a fairly small percentage of rich people, but the Party is afraid of large population strata that might start asking for political representation.

But it does give them a _lot_ of leeway for easy growth. They just need to make the country more business-friendly at the lower end.