Oil Markets May Be Misjudging News of China Lockdown

Everybody gets China wrong – not only oil markets. China is a sweatshop economy that absolutely depends on its export markets will to buy what they have. Once that is gone – and it is gone now – most of their production machine is useless. It will keep producing just like hair and fingernails keep growing on a corpse for a little while because they can’t just believe that the game is over. Xi knows that the system is unsustainable and that if this whole thing collapses, this might be the end of the CCP. COVID is a great excuse for wrecking the economy and preserving power. Better to be king of the rubble than dead. China is not coming back – a little opening now is not going to change that. 

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