China’s economy is moving toward a rapid tailspin.
The real estate sector is approaching a housing bubble of proportions akin to the subprime mortgage crisis of 2008 or worse. Major investment banks have cut China’s growth potential for the current fiscal year to 5%, starkly lower than China’s historically dubious official statistics of double-digit growth year-on-year.
Clearly, the misguided policies of China’s central planners are coming to a head, and the false notion of the superiority of the China model is on full display. This entailed showcasing the opacity of China’s predatory intellectual property environment, its unstable markets, and the risks of continued offshoring to an unfriendly authoritarian government bent on displacing the United States as the global superpower.
Yet we are in a far stronger position vis-a-vis our Chinese counterparts, and this should encourage the United States to double down in its struggle against the Chinese Communist Party. Sure, U.S. pension funds are still active in China’s capital markets and continue to risk funding People’s Liberation Army-affiliated entities responsible for China’s military expansion.
Ultimately, it will up to them to secure their own economic freedom, and the United States will remain concerned with its own geoeconomic strategy first and foremost.
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