Today s deep-seated contradictions in China s economy are entangled.

"Today, the deep-seated contradiction of China’s economy is entangled in real estate, because in the allocation of resources in the whole society, real estate has formed a devilish siphon effect, all resources and elements have been siphoned past. No matter how many policies are put forward, it will be difficult to be effective because the whole society’s cost is high and the whole economy is deeply kidnapped in real estate.

"Previously, China has been in a globalized dividend cycle. As the real estate economic model distorts the allocation of resources and intensifies the extrusion of efficiency, the profitability and competitiveness of manufacturing industry are constantly declining under the influence of the real estate extrusion. One of the most typical indicators is the current account balance as a share of GDP. 2007-2008 is a glorious time of globalization, accounting for more than 10%, which has fallen to 0.4% in 2018. This year, it may become negative.

This indicator corresponds to the ROE (return on net assets) of the world’s factories. It was not so urgent before because the world’s factories still have potential, although they have crowding-out effect, they can still support and inject cash flow into China’s economy.

For half a year, I finally saw an article written by a Chinese teacher that did not use the Yi Jing to interpret the economy.

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