They made huge investment commitments based on planned revenue. They'll go bankrupt (and tear much of the economy down, given how tied up everyone is in them) if they can't keep raising money to pay for these commitments or turn huge profits.
But will they? How greatly are they leveraged? Even if the economics don't work out anymore, they'll be able to sell capacity, pivot, etc. without causing an implosion.
They made huge investment commitments based on planned revenue. They'll go bankrupt (and tear much of the economy down, given how tied up everyone is in them) if they can't keep raising money to pay for these commitments or turn huge profits.
But will they? How greatly are they leveraged? Even if the economics don't work out anymore, they'll be able to sell capacity, pivot, etc. without causing an implosion.
> But will they?
Yes.
> pivot
Unless they pivot to literally turning shit into gold, it's going to be a hard no.
Realistically, they'll be bailed out by the government. That's what will happen. Because China can't win.