Episode 120: Dinny McMahon on China’s Hidden Crisis

China looks unstoppable from the outside — record exports, dominant EVs, and a relentless push into AI, robotics, and advanced manufacturing. But beneath the surface, a very different story is unfolding. In Episode 120 of The Puck, Jim Baer sits down with Dinny McMahon — former Wall Street Journal Beijing journalist and author of China’s Great Wall of Debt — to unpack what’s really happening inside the Chinese economy. China didn’t have the financial crisis many expected. Instead, it chose a different path — one that’s led to quiet austerity, stressed local governments, and weakening confidence across households and businesses.  At the same time, Beijing is making a massive strategic pivot: away from property and consumption, and toward productivity, innovation, and industrial dominance. The question is whether that model can actually deliver. In this episode: Why China avoided a financial crisis — and what replaced it The “hidden austerity” hitting local governments and the private sector The collapse of the property-driven growth model Why China is rejecting consumption-led growth The bet on productivity, AI, and industrial upgrading Innovation vs. imitation — can China create at the frontier? What China’s strategy means for the U.S. and global markets The real goal behind China’s currency push and de-dollarization This is not the China story you hear every day — but it may be the one that matters most.