US PROFITS HOLD UP IN Q4 2022 BUT CHINESE PROFITS COLLAPSE IN JAN-FEB 2023.

A number of prominent recent financial reports and commentaries focus on how much more accommodating and open the Chinese Communist Party has become to business and foreign investment. The reason for this is established by the graph in this article covering China’s Complex Rate of Return which shows a sharp deterioration. The collapse in profitability in China has forced the CCP into the arms of private capital as it seeks a way out of this crisis. Make no mistake, like all market economies producing for profit, reversing the collapse in the rate of profit is essential if China is to regain its dynamism once more.