Global Opportunities Beyond the Radar

The End of China? Here’s Why the Dragon Is Falling


The superior man understands what is right.
The inferior man understands what will sell.



China was our friend.

In 1972, this was the message that President Richard Nixon gave the world when he landed in Beijing.

If you were alive back then, you will remember how big of a deal this was.

It represented a cultural exchange. A thawing of diplomatic ties. And, more importantly, a geopolitical chess move.

Nixon wanted to drive a wedge between China and Soviet Union. By all accounts, he succeeded. He befriended the Chinese, while isolating the Soviets.

Some historians believe that this was a masterstroke by Nixon. It was a cunning decision that may have contributed to the Soviet Union collapsing in 1991.


Nixon shakes hands with Chinese leader Mao Zedong. Source: Wikimedia Commons


However, don’t forget about the law of intended consequences. With the Cold War over, the Chinese-American relationship only accelerated:

The economic transformation was swift:

Their brute-force approach to modernisation was stunning. They called this ‘socialism with Chinese characteristics’:


Source: Image generated by OpenAI’s DALL-E


Howard’s comment sounded flippant at the time. Was he serious? Well, as it turns out, Howard was absolutely right:

Of course, China is heavily reliant on trade. And once upon a time, globalisation favoured China. But now, in a turnaround, de-globalisation is punishing China. Here’s why:


Source: Visual Capitalist


However, right now, the biggest headache for China has to be real estate. You’ve already seen the headlines:


Chinese stocks on the CSI 300 Index are suffering from a debt-deflation spiral. Source: Google Finance


It’s now clear. China’s competitive advantage is shrinking. Its property sector is a time bomb. Collective anxiety is running high:

But will it be enough to resuscitate the Chinese economy?




Source: A Wealth of Common Sense


By comparison, America’s competitive advantage actually seems to be increasing:

Also, here’s another fascinating trend to observe:


Source: Image generated by OpenAI’s DALL-E


Finally, there’s also the tantalising possibility of science fiction becoming science fact:


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Your prosperity is our focus — which is why we are always working hard to uncover new opportunities beyond the radar for you. We’re eager for your feedback:



John Ling

Analyst, Quantum Wealth Report

(This article is general in nature and should not be construed as any financial or investment advice. To obtain guidance for your specific situation, please seek independent financial advice.)

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