The issue with China is a lot of their companies that are being heavily funded by their government and are still defaulting on loans. They can’t even pay basic employee salaries and have not for months.
US imports from China dropped like a rock during the pandemic. China has always struggled with overproducing and being left holding the bag taking decades sometimes to offload everything. If the dollar dies so will many of the biggest importers of Chinese goods around the world.
I find it rather odd how many companies in the US have been advertising that people need to have exposure to the Chinese markets. This seems like people trying to offload their positions to get out of china leaving their retail investors holding the bag. China has been on a massive spree of trying to broker new and bigger trading partners for a while now I don’t think it will be enough.
The game is so rigged against retail investors it’s disgusting. Between dark pools and market makers they never stood a real chance no matter what markets they are in. With the way companies like Robinhood make their money it’s not that shocking.
This is a great point. All of the economies being interconnected, any serious problems with US dollar and its economy would create problems to other countries as well. Fall of USD could even mean fall of all fiat systems around the world. China's economic success was partly to their ability to produce anything and everything and sell them everywhere. There are many more countries using the same strategy now and China has many competitors. Without these global marketplace Chinese economy would have difficulties too. I guess that can be said about any economy.