Folks, a major Global superpower is collapsing after years of draconian pandemic policies, and despite all the excitement around its reopening and the worry about a new China-led world order, well as of right now, China's economy ain't doing too hot and this is creating a massive problem. In fact, a major Think Tank just put out a comprehensive report showing that China is getting back into a corner real fast and things might be about to get ugly for the rest of the world Quote: As China's economic growth slows, president XI is increasingly turning to nationalism to justify the Chinese Communist Party Ccps hold on power. The report warns that in face of further economic downturn, XI may use the Taiwan issue to Rally support for the CCP and his personal rule. This was reported by Storia.

So after being done with China's endless lockdowns, well now the Chinese people are getting hit with more economic Bloodshed with more with more pain. And this report says that in order to distract from this issue and in order to re-gain support from the Chinese people, they want to go ahead and Stoke some nationalism by doing what well, perhaps doing something with Taiwan Now, what would action in Taiwan look like? Well, the report highlights a particularly worrisome scenario where China could impose Aviation and Customs control over civilian aircraft and cargo vessels heading to Taiwan claiming jurisdiction over the waters and airspace surrounding the island. This tactic could effectively blockade Taiwan impeding the free flow of goods and damaging its economy. Any military disruption of such an operation by Taiwan could potentially lead to a military conflict as reported by Asia Nikki Now remember if China decides to mess with Taiwan that is going to have a devastating impact to the global economy and specifically the infrastructure here.

The tech infrastructure here in the United States The entire Tech economy, which is most of the economy is very reliant on ships made in Taiwan Of course you already know about this, but remember, this is a very, very big percentage. In fact, according to this quote here, U.S tech firms rely on Taiwanese contract manufacturers to produce up to 90 up to 90 percent of their chips and Reuters reports here. quote: Taiwan now accounts for 92 percent of the world's most advanced semiconductor manufacturing capacity. Now, the Biden Administration did pass the chips act back in August with the goal to reduce our dependence on Taiwan and start manufacturing here at home.

However, it's too little too late. You look at a copy like Nvda, which recently hit a trillion dollars in market cap and is up something like 200 percent this year. Well, where do you think Nvda? Where do you think Nvidia manufactures their chips? Well, Taiwan Of course a Taiwanese company based in Taiwan manufactures them for them. But let's go back to talking about China and what exactly is happening to their economy.

Things are getting so bad right now that the CCP is already already trying to crank down on any conversation about the recession about economic Bloodshed about struggling in the economy. Anything that makes China's economy look bad? Well, China's making sure to crack down on it as fast as possible. I Know Chinese Censorship Who would have thunk? But listen to this. The Financial Times reports Quote: China Sensors Financial Blog: Economic Recovery falters Beijing Worries: negative sentiment could undermine efforts to Spur growth.

but this is not just one Financial blog or this is a broad Trend China is ramping up a Crackdown on financial sector commentators, a move that erodes the space for independent analysis and data and challenges Beijing's official Narrative of the health of the world's second biggest economy now. China Already, in the view of many experts and analysts, already lies about the data that they have from the economy. Now, not only are they giving false data, but the people that are commentating on that data, they're making sure to crack down much, much more than they've already done by default, Because if you're talking about economic data in China you already know. Hey, if I say something too bad, they're going to be very, very upset.

Now, if you say anything really, that's noticing trends that are anything that's slightly negative. now you're going ahead and they're saying no more. you're being censored. They're cracking down at a pace that makes the big Tech crackdowns here in the United States on Free Speech look like Child's Play Well, maybe not quite.

It's hard to beat Big Tech But anyways. look I know what you're thinking. Charlie Maybe it's not so bad if Financial commentators get cracked down on a bit. Charlie Hey, you know we have some of those here in the United States and they're always putting out those clickbaity titles and talking about different stocks and things go up and things go down.

We don't like them. Maybe it's not so bad if Gigi goes and sends these guys over to a work camp for some extensive work vacations. Maybe they can do something useful instead of just yelling at a camera. But folks, this is serious stuff.

and from China's perspective, the idea they have is that if people are aware of how bad the economy is getting, they're going to be much much less likely to buy houses. They're going to be much much less likely to go and buy goods and services, which is going to make the whole situation way way worse. Of course, if you're going out and you can't find a job, if your neighbor can't find a job, if inflation is too high that you can't afford anything on your salary, which is what the stats show for the average Chinese person right now. Well, you know for yourself that things are bad, but but you might be like, oh, maybe it's just me.

maybe it's just my community China doesn't want its people to see property sector weakness, insane debt levels in a lot of the local areas that funded projects that are never going to be profitable or even youthful. They don't want the consumer to know about consumer spending drops because it's just going to make the problem worse. They don't want to know about trade headwinds. China Doesn't want its people to know that youth unemployment hit 20.8 percent last month.

In fact, listen to this. Chinese State Media is suggesting that jobless University graduates should roll up their sleeves and try manual work. Put their professional Ambitions on hold. Imagine what that does to sentiment and support for the party, which you're supposed to have unanimous support for in China when all of a sudden everything is Contracting You just got a university job and they're telling you, hey, go work in the factory and when you have all these students coming out of the labor force and they don't have a job, what happens? Well, they get very, very frustrated and so that's why a lot of analysts were saying hey, JiJi is going to have to figure out some way to get people excited about the CCP again and to get them nationalistic again because the economy ain't going to do it.

The massive growth they had the last 20 30 years that made a lot of people very very excited. Well, that doesn't look to be coming back anytime soon. And by the way, don't be mistaken. I mean in the US we have a similar problem where people graduate with degrees and then they have a hard time finding adequately paying jobs or adequately skill match jobs.

But the big problem we have here's a lot of people who go and they'll study and they'll get massively into debt and they'll get a degree in underwater basket weaving and then they'll apply for a CEO job at a big tech company and they'll say I will only work remotely and I need top dollar and then they get upset of the government and at society when they don't get the job. But but if they just lower their standards a little bit, they'd probably get the job well. in China If you get the skills, if you have all the skills, well, you still aren't going to get the job a lot of the time. And that is what we're seeing right now in this current economy.

That wasn't true for China just a few years ago, but it's increasingly true right now. in the US We have a very, very big skill shortage in terms of relevant skills that the economy needs. But in China they have a lot of people that are coming out with great educations, but they don't have the jobs to match. And a lot of this was because of the Ccp's policies last few years destroying industry after industry and isolating China more and more and more.

A lot of the exciting growth and trends that the growth of the law last 30 years had brought are being completely unraveled. Their economy is reversing the trend and going back to low skilled jobs. You go over to China's currency that you want and you can see the increasingly tense situation. The currency's value has dropped pretty dramatically and consistently versus the US dollar.

And the way that you can think about this is that when a currency is dropping, it simply means that there's less demand for it. Yes, there's also the supply aspect of a drop in currency, but just assuming all else being equal. The reason that China's currency is dropping is because the demand for it is dropping because lots and less people are interacting within that economy, needing to exchange goods for the Chinese Yuan and less and less people on the international scale as well. If there's lots and less trade with China, there's less and less demand for the Yuan.

If it was the opposite, you'd see the value going up and as the currency gets devalued, the ability and the authority and the power of the CCP to get themselves out of this mess gets further and further complicated and many experts think that without a huge huge change in policy, this all is going to get way way worse for China Way way faster. Now A lot of people say yeah, but Charlie Okay, sure China's doing bad, but CCP Leadership have just come out at the World Economic Forum and promised that we're going to see a massive massive Rebound in China and Q2 and Q3 and Q4 Now, while the World Economic Forum and the CCP are some of the most trustworthy institutions and organizations and governing bodies on Earth, well, I gotta say I think the data suggests otherwise. Now for those of you who follow the idea of the New World Order where China replaces the Us as the global superpower and rewrites all of the rules of the game in their own image and philosophy, Well, right now, at least it's becoming pretty clear that there's a lot of challenges to that happening and the share of people around the world who rate the Us as the world's leading economy has increased markedly among U.S allies like Germany, Japan and France since 2020, but also net overall and there's a lot of reasons to believe that this might continue. The first reason is that China is struggling to get and maintain foreign investment in foreign relations that it used to have China's handling of the pandemic, their decoupling pressure with the West their Capital controls their or Taiwan the Taiwanese Invasion anxiety, the Russian partnership and moves from Western governments to push back against them is making a lot of investors and a lot of trading partners very very fearful and has been putting China relations on the back burner for quite a long time and has caused Western investors in Western Capital overall to be very, very scared of China in a way that they hadn't been for decades past.

The foolish thing is that the CCP has decided to look at their overall Revenue sources by trading partners and you know who they decided to align themselves closer with the last few years. Is it the US which is their biggest single country trading partner by exports? Is that the European Union which is their third biggest trading partner by exports? Is it a number of other Western aligned countries like Japan South Korea? Is it those countries or any other number of countries that make up close to half of China's exports? No, No, No, No, No. They've decided that all of these major trading partners that account for most of China's growth the last 20 years? Well, they don't matter. Our number one Ally Is these folks these folks over here way way way down on the list.

Over in Russia China's leadership has decided to choose the relationship with Russia over the livelihoods of its people, its economy, and its overall economic strength on a global stage. And the question is, how long does it take until China wakes up to realize that that was a big mistake? Hey, maybe the benefit of dirt cheap oil with Russia isn't worth the loss of every other trading export out there. But another problem that China has right now is their population problem. China's population fell for the first time in almost six decades in 2022.

It is also graying fast, with the number of Chinese aged above 60 reaching 280 million last year account for 19.8 percent of the population, up from fourteen point three percent a decade ago. This is a problem happening around the world, but it's particularly bad in China because of previous controls on the amount of people the amount of kids that people could have. China's one Child policy has created the situation where their population is in a much much worse situation than most other countries. China of course Rose to prominence by supplying cheap labor and goods to the US and the rest of the world.

But as the economy over there has gotten older, there's this new problem where more and more of the population is getting too old and will be dependent on the state. And if you don't have a lot of youngins to pay for the oldens and take care of the oldins, then all of a sudden, what happens? Well, the society starts collapsing and again, this is a problem that we have here in the United States. But it's particularly bad in China because of the way that their economy is centered and because of that one Child policy, which is why many of the enforcers of that one Child policy are now pushing people to have three. and even today, they are already seen protests by pensioners against lower medical subsidies in Wuhan Dalian and other cities and you'd think Wuhan would be fine after all that exporting success they had.

A couple years ago, the Chinese Academy of Social Sciences a Beijing-based governmental Think Tank warned in 2019 that the state pension pool could dry up by 2035 given the dwindling population and social Security contribution. And here's the thing if even China if even Chinese institutions governmental think tanks are saying that this is going to happen by 2035, that means it's probably already happening and it's going to completely run out by, say 2025.. So you have this big growing liability that you got to pay attention to. All of these are existential threats to China and their growth.

But I think the biggest problem for China is what everyday folks are facing right now today. Everyday Chinese folks are fed up with years of bad economic issues and bad policy handling. and now once again, they are being hit with an environment where they can't get jobs and they can't provide for their families an increasing number of them. You may be able to accept that in a crisis, but years after crisis, maybe not so much.

Reuters reports annual profits at China's industrial firms extended a double-digit decline in the first five months as softening demand squeeze margins, reinforcing hopes of more policy support to bolster a stuttering post-covet economic recovery. So they are seeing rapid declines that many believe are going to lead to more extreme government support and government policies. In fact, the CCP decided to lower rates recently, but again, the trends are moving against China right now as the external environment becomes increasingly complicated and severe domestic demand still appears to be insufficient. Weighing On further recovery in industrial profits, It's not just Global demand hurting China but it's also Chinese domestic demand, It's been completely destroyed.

Unless you're at the top of the top that's destroying a lot of Industries Alongside it, and certainly the profit margins, profits sank for 24 of 41 major industrial sectors During The period with the petroleum, coal and fuel process in Industry reporting the heftiest lump at 92.8 percent. that is a disaster. Now a lot of people look at the multi-decade long Chinese growth Trend and suggests that that means that oh China system works and Oh China is going to take over the Us as a superpower and sure if they bounce back with those kinds of number that they had the last couple of decades, well, certainly they'll be a bigger economy and they also got a lot more people. But remember, and this is very, very important: China System only works because because of its trading partners.

If it wasn't for all the other countries with much, much more robust economies buying from China all of these last few decades, while this growth would have never happened and now that the rest of the world is Contracting and spending Less on these Goods at the same time where China is essentially signaling to the West that they are more concerned with Russia and with their own domestic Capital controls and business crackdowns than they are with trade. Whilst creating this Dynamic where China's economy is becoming a thing of the past and if trade relations and investability and all of these concerns aren't resolved, well, there's only so much stimulation and low interest rates can do. If China doesn't wake up to the fact that it needs the West to continue its growth and it keeps aligning itself farther and farther away from the west, then you are very likely to see their struggles get way way worse. Anyways, folks, let us know what you think about China down below: Do you think China's economy is going to get way way worse? Or is this just a little short-term blip? Before they go back to their previous growth rate, let us know down below: I Appreciate your viewership here on the channel and we'll see you in the next video.

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