What I described is independent of CEO behaviour. It's also not actually about washing machines, it's about money needing to circulate and consumers not consuming stopping that. How China got itself into the situation is irrelevant, what matters, on the business side, is the sudden lack of liquidity as the company's source of income dries up while costs (wages, anything fixed even if you shut down production) continue.

What you say about CEOs might be true -- but then China is a command economy. It could just order CEOs to cut the shit. The comrades in the central committee, in all their wisdom, apparently only want to harden the Chinese people against hardship that's why they're crashing the economy it is for the betterment of the nation and the success of socialism.