If there is a China Profit and Loss report, you are focusing on the bottom line and the balance sheet cash
You overlook the expense account of wages and salaries. If sales slow then the need for workers to make the products not sold diminishes. At sme point employee rolls must be cut....... layoffs.
In an economy drunk on growth, a reversal will hit workers hard. Large numbers of the layoffs can occur in the Pearl River Delta region adjacent to Hong Kong
People are out in the streets of Hong Kong in the hundreds of thousands
If that disease jumps the border to those layed off......... big problem
You are relating the communist regime companies to a normal free market company responding to market reversals.
Nothing could be more foreign to their ideology than acknowlegment of reversals via labor layoffs. They are probably hoist on their own petard as it were. Look at the ‘ghost cities’ they built on the basis of ideology that were never populated as the party line dictated.
Either way they go to meet the challenge could be a historic monster move ideologically. They could reflexively decide the answer is war to keep control. Our enemy is embroiled in interesting times.