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President Trump’s Actions Are Forcing China’s Inevitable Economic Collapse – China Can’t Compete with the US

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President Trump’s actions are forcing China to face reality.  China cannot compete with the US, and its economy is on the verge of collapse. 

We’ve reported for years on China’s impending financial collapse.  Before COVID we reported on the slowing China economy.

After COVID we reported that if China released COVID intentionally, it may have been to hurt the US and world’s economies because China’s CCP led economy was failing.

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The world finally caught up.  The numbers coming out of China are bogus.  The CCP-led economy is failing. Business Insider reported in October 2023 that China’s economy was in a dire state.

For the past three decades, China has been on the upswing of a supercycle that saw an almost uninterrupted expansion of the country’s capacity to manufacture, appetite to consume, and ability to project power across the world economy. The Chinese Communist Party relentlessly pursued economic development over all else, even when that single-mindedness pushed the party to make debilitating policy mistakes — creating a massive bubble in the property market, saddling provinces with loads of debt, and failing to transition away from an overreliance on investment. There was no time to stop for corrections while China’s mind was on money alone.

This era of expansion was not only a boon for Beijing, it also helped fuel global demand. Countries relied on China’s hunger for speedy modernization and industrial might to supercharge their own development. Even American companies saw China as the next great global market — and made bets accordingly.

They lost those bets.

President Xi Jinping has shifted the CCP’s raison d’être to national security over the economy. Getting rich isn’t China’s big project anymore; the project is power. As a result, both the government’s priorities and behavior have changed. In the past, whenever it seemed like a recession was on the horizon, the CCP came to rescue. There’s no hefty stimulus coming this time. Nor will the explosive growth that experts once expected from China return. Beijing’s relationship with the outside world is no longer guided by the principles of economic rationality, but rather its yearning for political power.

“This isn’t about the economy anymore, it’s all about advanced technology and weaponry,” Lee Miller, the founder of the Chinese economic surveyor China Beige Book, told me.

In response, American businesses need to consider how else Beijing’s decision-making may now be flipped on its axis. For everyone from American farmers to pharmaceutical companies, this means shrinking demand and unstable supply chains. For policymakers, it means a China that is harder to mollify when conflicts arise. For the rest of us, it’s a more precarious world.

The Insider went on to share about China’s real estate market.

It’s been clear for years that the Chinese real-estate market has been in trouble. China has a population of 1.4 billion, but it has built housing for a population of 3 billion, according to expert estimates. Many of the mega-developments became empty monuments to Beijing’s insatiable desire for growth. In Shenyang, farmers have taken over a development of empty mansions for cattle grazing.

Real estate was a quarter of China’s GDP.  It inflated the national economy, and now property sits empty.  The value of this property is rapidly declining.  Polluted skies and empty buildings are not uncommon.

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China expert Gordon Chang has also highlighted issues with China’s economy for years.  He notes China’s banks are almost certainly insolvent on a balance-sheet basis. In short, on their books, they are showing bad loans as good. When the regime runs out of liquidity, it will collapse in the biggest bank crisis in history.

Chang shares a report on the real estate giants in China that are now in distress.

When Beijing Prices the Banks

Vanke, once China’s model real-estate developer, is now on the edge of default. International rating agencies have already classified it as being in technical default.

Why does this matter? After all, China’s property sector has been in crisis for years. Defaults, restructurings, and liquidations have become routine.

Yet I still can’t feel numb to this one. I spent more than a decade in China’s real-estate business, and Vanke was different. For a long time, it was held up—domestically and internationally—as the gold standard of professional management. From 2014 to 2018, Fortune ranked Vanke No. 1 in the global real-estate sector in its World’s Most Admired Companies list. That supposedly reflected genuine confidence in governance, discipline, and execution.

Attached is a list of China’s top 20 developers in 2021, the peak of the property boom. Half of them—10 out of 20—are now in formal distress. Together, these firms carry roughly RMB 3.5 trillion (USD ~500 bn) in interest-bearing debt, and RMB 9–10 trillion (USD ~1.5 trillion) in total liabilities. And that’s before accounting for the cascading stress on upstream and downstream contractors and suppliers—where trillions more in implicit exposure likely sit.

Also attached is a stock-price chart of China’s five largest banks by assets since 2021. Their shares have risen steadily, even as an industry that once accounted for about a quarter of GDP has collapsed in slow motion.

That divergence is striking—and a reminder that when the state socializes losses and manages the market, investors believes that mispricing risk is not a bug, but can be a strategy. I wonder if this can actually last.

Now add to this, President Trump’s announcement that the US will increase its military spending by 50% to $1.5 trillion per year.  This action puts tremendous pressure on China.

Trump Is About to Bankrupt China the Soviet Union Way.
He just set a Soviet-Style trap for China.

Trump plans to raise U.S. defense spending by 50% to $1.5 trillion in 2027, about 5% of GDP.

This isn’t about Russia.
Russia’s economy can’t keep up.
This is aimed squarely at China.

It’s Reagan vs the Soviet Union—version 2.0.

Beijing now faces a dead-end choice:

Match U.S. spending → crush an already fragile economy
Don’t match it → fall behind militarily and lose face globally

Either way, China loses.
That’s exactly how the arms race bankrupted the USSR.

And that’s why Beijing is panicking about this decison.

President Trump is strategically economically destroying the radical communists running China.  He’s doing this without firing a shot. 

142 thoughts on “President Trump’s Actions Are Forcing China’s Inevitable Economic Collapse – China Can’t Compete with the US”

        • What blows my mind is China needs the economies of the world to keep their people working and money coming in. Without it there will be a revolution and they will be out. Yet they would consider wiping out trading partners that keep them in power. The are unnecessarily aggressive towards the hand that feeds them.

        • Trump may have no choice but to do a military roundup of the crooks so widespread in and out of our government.

        • The US is less than 10% of Chinese exports and falling. They had a $1 Trillion trade surplus this last year. They also ended importing chips from US companies.

    • When our elected leaders created incentives for business to ship jobs overseas, the Chinese essentially were printing money…….ours

  2. The only thing keeping the CCP in place is the world's manufacturing, but that's coming to a fast end. Expect China to hustle the world, like Jesse Jackson and that nut in N Korea, to forestall the demise of communism in China.

  3. The CCP servives because 68 billion a month gets pumped into it by Wall St and more from the city of London. Stop the investing and crush the CCP.

  4. The Chinese dictatorship has murdered more people than all other governments, in all other nations, in all human history.

    Every communist dictatorship in history has collapsed under its own corruption and incompetence. Even with all the help given to them by traitors in our own state department. China's turn is coming. Remember who the collaborators are.

  6. This headline is music to my ears and I desperately hope that it is true. President Trump must use all the economic weapons at his disposal to bury the CCP onto the ash heap of history before they get so big and powerful with a stranglehold on enough of the world to make them unstoppable. Trump has toppled the Venezuelan leader. A domino effect of that is the Communists in Cuba will fall. The Iranian Mullahs are on the ropes and Trump has pledged to help make sure they fall. That leaves the CCP. If President Trump could ever succeed in toppling the world's most evil regime and the world's biggest existential threat, it will be such an historic masterpiece of toppling evil and making the world a much better place that he'd have earned the title, Saint Donald. Wouldn't you just love to see the Left go apesh.. if President Trump became known as Saint Donald.

  7. Their ?Banks, hold worthless mortgages on empty 1/2 completed buildings in cities with no street or sewer plants.

  9. All those empty buildings. I have a solution…. fill them with Sub Saharan African migrants. Fixed it for ya'.

        • While that would be nice, they seem to be ignoring the obvious out that China will take to salvage their economy and face. Start worrying seriously about Taiwan. If China takes them and their robust technology they save face and infuse their faltering economy with much needed real currency. War is brewing as we look the other way.

          • Taiwan has set there factory to self-destruct if they start losing…they are also moving their mfg to safer spots. Also, China does not have the military to succeed at invading.

          • Sure, and that’s what they said about Japan in 1940. Desperation leads to rash decisions. Never underestimate a cornered rat

          • Still, in 1940, Japan was not killing tens of thousands of American Citizens by feeding the illicit drug trade or releasing biochemical weapons on the world. We're already at war.

          • If china did not make a move on Taiwan on Sleepy Joe’s watch, they sure as heII are not contemplating it now. Trump keeps taking their pieces of the board. China’s ally Maduro is GONE, the ayatollah has been rendered impotent and on the brink of falling.

          • That's right, China will be losing vast income now that Venezuela has been neutralized and drug running is failing because of our Awesome President and Military. Justice is being served from On High. This is just the beginning. Keep praying. Shalom.

    • The US really needs to assist China with a nice big healthy dose of diversity. They hold a lot of investment in Africa that has been extremely detrimental to those African nations. They need to have at least 100 million African migrants to assist them in diversification.

    • The “N” word in China means “this or that.”
      Imagine being able to walk the streets 24/7/365 without fear of getting robbed or for your personal safety?
      China might have a housing vacancy problem but unlike the States there isn’t a homeless and drug addled zombie problem.
      The U.S. can’t keep up with China’s affordability.
      Things are 8x to 10x cheaper in China.
      Life is good in China.
      I think we will stay.

      • Correct! They are funding the current unrest presented by the ICE protestors and the No Kings rally crap we seen here in the United States to destabilize our country.

    • No, fill them with American Blacks and the CRAZY white liberal women that have their babies. They want socialism, give it to them.

  10. Or is this a move to bolster the stock market via the military and industrial complex the same way the stock market was bolstered via the extremely corrupt affordable care act?

  11. It would not shock me to learn that the chicomms released Covid with the DS’s knowledge, blessing & help. Card carrying swamp member Fauci’s fingerprints all over it.

  13. Not caring about China is like saying you ignore that loony guy next door who keeps threatening to shoot your dogs… Because one day….

  14. Great article and conclusion on why Trump wants to increase military spending by 50%. He is using the same strategy as Reagan did to collapse the USSR.

      • A prolonged drop in oil prices did in the Soviet Union. China imports oil, so a different economic strategy is needed.

        • The Soviet War in Afghanistan was their Vietnam:

          "Indeed, for almost 10 years, Moscow had to carry on a war that was unsustainable for the regime, a conflict that brought about the demoralization and finally the breakup of the Soviet empire."
          Zbigniew Brzezinski, David Gibbs Interview (1998)

  15. If it's a bluff, it might be a good one. They could pretend to spend $1.5 trillion and "stash" the extra $500 billion to be used later for non-military domestic endeavors while China spends itself into oblivion trying to keep up. I guess it depends on how effective & plugged-in the Chinese spy operators are, or whether we're able to keep a secret. Lots of "ifs".

  17. I have said from the very beginning when covid first hit the U.S., and it was determined the virus originated in China, that it was a bioweapon intentionally released and spread primarily intended to collapse the U.S. economy. The CCP sent infected Chinese people to the U.S. in late 2019, when the first reported cases of Covid-19 occurred. This was a 2-pronged effect. Collapse the U.S. economy and sabotage President Trump's re-election.

  20. Don't know whether to believe we have China on the run or not, but if we do get the upper hand, don't give them ANY breads. Kissinger/Nixon held out their hands in peace 50 yrs ago, gave our manufacturing jobs to them and they are trying to kill us with the proceeds. Screw China and the Chinese. They never want peace, only world domination.

    • Funny how the leftist vermin do not protest companies like Nike that use slave labor in sweat shops in the PRC.
      You would think these "caring and compassionate" liberals would be outside any American companies corporate headquarters protesting this outrage.

  22. I don't know if China's economy on the verge of collapse or not.
    But,for thesake of argument, let's say it is.
    If China's economy does collapse, it won't matter.
    The ruling communist party elites running (and ruining) their country will still be in power and will still continue to oppress their people and probably go into isolation like Cuba.

  24. Trump plans to raise U.S. defense spending by 50% to $1.5 trillion in 2027, about 5% of GDP.

    Good luck with that. The U.S. federal government’s deficit in 2025 was nearly $1.9 trillion. Where are are they going to get another half trillion for increased defense spending? The Republicans won’t raise taxes, and foreign countries have already started dumping U.S. Treasury bonds so, all that is left is to print money. That will result in renewed inflation, which will further impoverish the middle class. We are already at the point where the national debt is growing faster than the economy, which means that the only thing keeping the economy afloat is borrowing from our children and grandchildren.

    Yes, China’s economy is on crisis, but so is ours. The real question is which will collapse first.

    • Wrong, our economy will expand beyond anything we’ve ever seen.. get some popcorn and watch it happen. Trump is building our economic base as the world flounders.

      • I’m not wrong. Our economy is growing more slowly than our national debt. Will that change in the near future? We shall see but, so far, under the second Trump Administration, it hasn’t.

        • It hasn’t even started to accelerate.. when it does, your worries will evaporate. Your calculations assume a static economy.. we don’t have one of those. Expansion is the key word.

  26. I've been hearing such from China Observer, etc. on You Tube. BYD is just building EVs and stacking them high, it's on the verge like Evergrande.
    Don't believe the nonsense you hear.
    Those tofu dreg buildings are empty, unlivable and hazardous

    • buildings with no finished Plumming , no sewer hook up , the local electric power already over its ability

  27. "It’s Reagan vs the Soviet Union—version 2.0."

    "Harry Truman, Doris Day, Red China, Johnnie Ray"….
    Billy Joel, "We Didn't Start The Fire" (October 17, 1989)

  28. China has been preoccupied with appearance over substance and created a huge house of cards. It has micromanaged out any creativity it could have had. It has a culture where the young can't challenge the senior people, so ideas get crushed before they are even considered. It now has a population disinterested in marriage and family life.

      • The US was founded by rugged individualists. China had a warlord history and world conquest goal. Not quit the same.

        • The rugged individualists are largely long gone. The historic founders gave us a Constitution which is being complety ignored.

          China, with thousands of years of history was ruled by Emporors, with periods of unrest, rule by warlords. Chiang Kai Chek being the last one. China has historically remained within its’ own borders, and refrained from wars of expansion.

          • We're still here. There is this belief that there are 2 factions in the country. There are 3. The 3rd one will be the one to worry about when things go sideways.
            China is an empire and not really a country. China gobbled up 11 countries who would not remain part of the empire if the ccp fails to keep things unified. China's history had multiple kingdoms being ruled by separate kings all at the same time.

          • A 3,000 year history. 12 times longer than our recent existence. There was an age of kingdoms, an age of Mongol invasion and rule, and age of warlords that western countries used to carve out colonial ports to exploit them. The British narco state actually fought 2 wars to force them to allow the unrestricted purchase of narcotics grown in India to profit and destabilize their society.

            When our Republic was formed, a trade delegation was sent to China, as it was then the largest economy on earth, to open trade. The emperor had better things to do than meet with upstarts.

            Bottom line is China has been a cohesive nation state for a very long time. With intermittent periods of chaos, unrest, and fractures. Yet they survive.

            While the CCP maintains political control their economy is complex. And very successful, with poverty shrinking along with the non communist concept of private billionaires.

            We did finally develop a more or less free enterprise system that has morphed into a vulture capitalist system that has destroyed a prosperous, homogenous and politically strong middle class.

            The trajectory of our economy and prosperity is rapidly escalating into collapse. The gold based $ was abandoned to fiat currency after the back breaking debt of our lost Vietnam war. The Petro $ artificially proped the system up. But we used our wealth and credit to constantly regime change and conduct wars. We can’t go back on gold standard. While China has the gold reserves now to do it.

            Waging wars aren’t going to help us.

          • A unified China hasn’t been around all that long. You forgot the Japanese occupation of China and the Russian land grab too.

          • The Japanese occupation was a relatively short term period at the tail end of the warlord period. The lasting catastrophic consequences of Japanese occupation was the last US backed warlord fleeing to Formosa and reunification of China under the CCP.

            Our permanent state remains obsessed with destroying Taiwan to hurt China.

          • Taiwan is where the leader from the Chinese Republican era fled. It became a success without going commie. The ccp can’t have that. It makes them look bad. China’s biggest problem is its divided focus. It has to maintain what it has with tyranny and expand where it wants to go. It never ends well for those with a divided focus. China still has to maintain control over the 11 countries it absorbed who might not want to be part of the empire.

      • It's men who decide if there is going to be a marriage. Currently, marriage is a really bad deal for men. It's a great deal for women though, it's like a life insurance policy and a pension for women. If we want to increase the marriage rates, make marriage a better deal for men.

  30. So they have all this extra housing space…Send them all the illegals and Muslims and the rest of the world survives

  32. the global economy is failing. when the economy was booming oil prices spiked if there was a fuel spill at a gas station somewhere in the congo.

    now, even the capture of an opec head of state, a global conflict resulting in petroleum transportation disruption, and the bombing of critical petrochemical infrastructure isn't enough to sustain a unit price below the cost of production.

  33. Collapse? Doubtful. What about China’s hold on minerals needed for computer chips? Does that collapse too? Does that lead to world collapse? Think about it before you write this BS.

    • China's rare earth industry generated approximately $6.5 billion globally! Not enough to pay for much! It seems you think they are making trillions off of it. NOPE! Rare Earth will not save them!

      Besides, Trump has pushed rare earth mining investments and escalation here in the USA to supply our demand so……..Trump knows what he is doing and this article is spot on!

    • Trump begged Xi to continue selling refined rare earths, he was placed on probation for a year.

      The Chinese are 20 years ahead of us in this. It takes a decade or more to build the infrastructure to refine these, let alone building functioning mines for their initial extraction.

      With Trumps' belligerent actions and rhetoric, if China institutes export controls for dual use refined rare earth elements, our MIC is dead in water.

      China is not collapsing, this is utter nonesense.

      They have reduced their total US bonds to $688 Billion. I can never comprehend the logic in being dependent on borrowing from a country you openly denigrate, threaten and call your enemy.

      Our government spends $1.62 per $1.00 of revenue. Trump is increasing the gap at an unprecedented rate. We will collapse long before China.

  35. I love the GP but this article is a joke. If anything, the risk is that China will outcompete us in every financial metric by 2030.

  37. If accurate, I think this is great, so what I am about to say isn't meant to detract from the positive news of this article. We must not ignore the exposure our own economy faces due to our commercial real estate market. Look at how many corporations have downsized their office space footprints as their existing leases expire, since the WuFlu changed the paradigm to remote work – at least partially – from 40 hours sitting at a desk in an office. There is a LOT of vacant office space, and the owners of the buildings still have to pay their loans, regardless of whether they have enough tenants paying rent. How bad will the U.S. economy be hurt when the commercial real estate market crash hits?

  38. How long until the Chicoms release an even more deadly virus on the world, to be followed by Big Pharma finishing the job?

  39. My understanding was that a large part of residential real estate debt in China was basically held by small investors who invested a lot of their retirement savings into real estate outside of the regular Chinese banking system. It may not be the regular banks that are on the hook for all this debt.

    Ultimately also, China has a command economy: they can handle a lot more financial collapse than we can.

  40. Stop the money to corrupt politicians and organizations, stop buying farmland, stop funding insurrection around the world, eliminate your department of hackers…it won't help much but it's a start Xi.

  41. No mention of the killings of officials, sounds like some paranoia going on there. Not to mention all the mad citizens gathered in the streets.

  42. No one ever talks about China's eminent population collapse. China had a one child policy for 36 years and in that time the majority of families wanted a male child. Today their population demographics are extremely top heavy in age and those people are leaving the workforce in massive numbers. Not only does China not have the young people to replace them, but they also don't have the fertile females to even approach replacement birthrates. Combine this with the amount of care the massive elderly population is going to need and their economic crisis is compounded.

    China has never recovered from the Evergrande real-estate collapse and they can't keep up with energy demands to maintain all their special projects like EV's and AI. Officially they publically disclose that their national debt is only 75% of their GDP, however their shadow banking is a well known secret and experts estimate their actual debt to be closer to between 150% and 400% GDP.

    Militarily their recent expanse is mostly a paper tiger as their "new" carriers aren't capable of sustained blue water operstions due to fractured hulls and lack of broad international logistical support. Their aircraft capabilities have been proven to be VASTLY over estimated as the J-20 and J-35 are proving to be basically Temu knock offs of the F-22 and F-35.

    What makes China dangerous is that they're becoming desperate because the CCP knows how bad their national situation actually is, and Trump keeps blocking off all their escape routes. If you monitor social media you can see China executing a classic Sun Tsu tactic of "appear strong when you are weak." Currently China is at the weakest point it's been in 2000 years. And even after all I've already said, I didn't even address Xi's rapidly crumbling "Belt and Road" initiative.

  43. The Chinese economy has been a house of cards for many years, Trump is making moves to neuter them.. along with the rest of the globalist filth.

  46. We Built Them. Nixon was rubbing up against their legs like a horny cat. Clinton gave them 2nd stage separation technology and overnight they went from launching pop bottle rockets to ICBM's overnight.
    Add Obama, Biden and a corrupt greedy corporate structure emboldened to outsource and China is now #2.

    Break them and send them back to the paddies.

  47. On top of everything, the buildings constructed during China's building boom are so poorly made they are collapsing.

  48. China's economy is collapsing? And ours isn't? Hell the entire world's economies are collapsing under the fiat London based economy.

    We're $39-trillion in debt and climbing. You call that solvent?

  49. Free markets are much more efficient than command exonomies

    Authoritarian regimes cannot keep up with the information provided by prices

    Thousands of decisions are made instantly in the narjet

    Then throw in the graft and CYA to show loyalty

  50. Several years ago I spent some time on Google Earth looking at major metropolitan areas (massive building projects and highways) and I couldn't help but notice almost no cars on the highways. It was surreal. Where it looked like there should be wall to wall traffic, there was nothing.

    I began to believe my own eyes over any "news" report.

  52. According to multiple analyses, China's population is about 500 million lower than official figures. The birth rate has collapsed, and millions of women can't find husbands after prioritizing careers over marriage while in their twenties. The real estate collapse is taking down other sectors as people who are underwater on their mortgages can't afford to spend. China is in a world of trouble economically.

  53. China can't compete with the US? Don't deceive yourself. It's when we get cockey and self confident that we fall. Pride still comes before the fall!

  55. I've been reading about China's impending economic collapse for the past 20 years.

    Sort of like Iran being 2 weeks from a nuclear weapon—for the past 20 years.

  57. "We’ve reported for years on China’s impending financial collapse"

    And for years you've been dead wrong…….and this time?

  60. China Is a hot air inflated giant. Rushed in production, made of poor quality materials, using cheap (lousy) labor quality.

  61. 1) Is there a chance that China's economic collapse could have a domino effect on the economies of nations around the world, including ours?

    And

    2) Would that then give the NWO globalist elites an excuse to introduce (strong-arm) the Central Bank Digital Currencies (CBDCs) as a supposed life jacket?

    Just wondering, because there's a whole lotta tokenizing goin' on right now:

    Real-World Asset Tokenization Hits $24 Billion As Wall Street Bets Big
    – Forbes, June 20, 2025

    BlackRock CEO Larry Fink Declares “Tokenization of All Assets” Era Has Begun
    – Yahoo/Finance, October 14, 2025

    Trump Group and Saudi Arabia's Dar Global unveil tokenized hotel project in the Maldives
    – Crypto News, November 17, 2025

  63. They only came to power because our own Deep State propped them up and sent all of our manufacturing there. They were the intended inheritors of our dynasty.

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