About 25 years ago, they designed and implemented a system very similar to the USA’s social security and medicare system
Thus, it is having the exact same “ponzi-scheme” problems, but worse - its system has not been running as long, while its population is aging faster than the USA’s, and they can’t inflate away their debt as much as the USA can.
They have tried to copy us in many regards to include things that are ultimately not a good idea when administered by idiots in a bureaucracy.
We have massive bubbles from unfunded liabilities. It is interesting to consider that the CCP has created the same bubbles. Their real estate bubble makes ours look like chump change. They are having millions of foreclosures every month in what the Chinese people in these videos refer to as “concrete boxes” where they sank all their money.
In the US you can simply walk away from a home and declare bankruptcy. In China they foreclose on your home but you still owe the bank tens of thousands of dollars even after you become insolvent.
The CCP is incredibly corrupt but I increasingly believe that the same kinds of idiots who run our treasury and manage our central banks are even more common within the CCP.
I cannot find it now but 6 months ago there were videos of people in China posting that they purchased new apartment residences in brand new buildings for 250k and then the value dropped to 125k and to make matters worse within a year or two the buildings started falling apart from crappy construction and materials. From what I can gather these people lost “half” of their investment IF the local CCP will force the developer to fix the problems BUT in many instances the developer is in bed with the local party so they are not forced to fix the problems.
IF the people walk away or cannot afford the mortgage on the building that is worth 125k then the bank forecloses but they still owe the bank approximately 40-60k in contract fees and obligations.
That is crazy (and highly corrupt). The CCP members really take advantage of the common people there who seem even more ignorant about economics than our population.