Part 8/8:
If consumer spending fails to rebound, the impending rise in defaults and the overall economic malaise could push China’s banking system into a disastrous downturn, where widespread bank failures could trigger a broader financial collapse—a scenario that both domestic and international watchers are now closely monitoring. The next steps taken by policymakers will be critical in determining the fate of China’s financial institutions and the overall economic stability of the world's second-largest economy.