Obviously anything anyone responds with is going to be heavily biased and opinionated. So what I’m writing is purely my own opinions.

I think you are correct. China is in a period of GDP growth for the sake of growth and is having issues with community conditions. For example, while their GDP is still shooting up and their productivity is growing, their not really creating jobs. There’s 20% youth unemployment. Most of these jobs are taken by AI or automation. So I think this is definitely causing the issues you’re describing.

However, unlike other countries, China keeps an iron grip on it’s economy. It’s actively doing things like fining billionaires and redistributing the fines into community growth. It’s also reigning in corporations and forcing large companies to support the communities.

However, this kind of heavy handed actions has traditionally lead to financial crisis. It’s why we generally don’t like industrial policy. On the other hand, with every other country doing it’s own industrial policy now, I would bet on China since they have the most experience with it.

IMO, China’s going to do alright, only because everyone else is going to do worse. It’s a race to the bottom with China having the most experience with this kind of governance.

But I could be wrong, no one knows.