Part 3/9:
The situation has escalated to such a level that observers liken it to historical precedents—referring to previous empires that faced similar existential threats due to trade imbalances. The infamous century of humiliation in Chinese history serves as a stark reminder of what can happen to an economy that allows trade deficits to spiral out of control.
The Reaction of Global Markets
Recent developments indicate that the pressure is mounting on China, with reports of a 16-month low in factory activity and a significant drop in profits reported by major Chinese banks. With these economic pressures, Chinese factory workers are now voicing concerns over unpaid wages, indicating a system under duress.