Name: China is not ready for what’s about to happen…
Uploaded: 2025-08-11T17:57:45.000Z
Duration: 15 min 2 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

To-infinitive

China is not ready for what's about to happen.

The superlative

China is about to face the greatest financial crisis since the great famine of the 1960s.

Future simple

China's economic growth has been one of the most spectacular growth in the history of humanity and it seems like that growth is going to continue until China will overtake the world and will become the world's largest economy, but that's about to end.

The United States is pushing China to sign a deal that is going to push China into a recession that will take it years to come out, and the last time that China was in a recession was back in 1968.

The United States already raised tariffs on China to 145 percent, China retaliated by raising the tariffs on US goods to 125 percent, and this economic trade war is going to push China into a stone age.

So let me tell you and explain to you in this video why China is about to face a financial disaster.

If you are ready, give this video a thumbs up and let's get right into it.

The United States is a market-driven economy, while China is a state-planned economy.

The US intervenes sometimes in the economy and tries to manipulate it in some way, but it's mostly market-driven.

On the other side, the Chinese economy is mostly driven by the state.

So if a state, for example, wants to improve a certain industry, they will take a lot of money and they will start pouring into that industry unlimited amount of money until that industry becomes so big and so huge and will dominate the entire Chinese market.

In fact, the government even pours a lot of money into that particular industry in order to make their prices price-competitive compared to the rest of the world.

And that's how China became an export-driven economy.

So China easily builds monopolies compared to other countries.

And if you look at the Chinese economy, you will quickly realize that there are actually monopolies in every single sector.

Now compare that to the United States that actually fights monopolies.

The US government consistently tried to break down every single monopoly that became too big.

Go back to 1920s and 30s, the US government broke down the standard oil and turned it into one giant company that controlled the entire oil industry into 22 or 27 companies.

Go back to 1970s and 80s, the US government broke down AT&T.

Just recently, until Trump came into office, the US government was looking into breaking down Google into a few companies so that Android will become one company, the search engine will become a completely different company.

In China, the government purposely picks up companies and turns them into monopolies so that they become price-competitive and they will have a chance to compete internationally.

And if you look at the smartphone industry, for example, in China, you will quickly see that.

Apple, for example, represents 15% of the market share.

But just 5 or 10 years ago, Apple was the dominant player where almost 40% of every single smartphone in China was an Apple.

But after the government of China started pouring money into companies such as Honor, Oppo, Vivo, and Huawei, they became so huge that they dominated the entire Chinese market and their smartphones right now are being sold all over the entire world, even the United States.

And those companies do not have to turn a profit unlike Apple.

But in the United States, that's impossible because the government does not do something like that.

And most of these companies are market-driven, which means that they are funded by investors and they do not have an unlimited amount of money.

So if the company is not profitable, investors will pull out their money and will invest elsewhere and that company will slowly fade away.

Take an example of EVs, for example, BYD is the largest EV company in China and probably the world.

Last year, they sold and produced around 3.5 million cars.

Tesla on the other side have produced around half a million cars.

And there is a very huge difference between these two companies.

Why did BYD become so successful compared to Tesla?

Because BYD does not have to turn a profit at all, but Tesla has investors to be accountable to.

And Tesla does not have an unlimited amount of money, but BYD has that.

Do you see the problem in this entire system?

Do you see that China is not playing by the rules?

In the US, companies are funded by private investors who have a limited amount of money, while the Chinese government has unlimited amount of money.

So if Chinese government is going to pick up any kind of industry, they will outperform any company in the United States and they will beat competition because they don't have to turn a profit.

You might say that, well, in the US, there are companies that don't have to turn a profit for a very long time.

Take for example Amazon that was actually operating at a loss for over 20 years before they turned a profit.

Amazon is funded by private investors, and they literally worked to make a loss for a very long time until they took market share.

That is very different from a company in China where they are actually directly being funded by the government of China in order to succeed.

So if Amazon for example is going to compete with Alibaba, and Alibaba has the full force of the Chinese government, who do you think is going to win in a war between Amazon and Alibaba?

Of course, Alibaba will outperform China because Alibaba does not have to turn a profit, while Amazon is accountable to its investors anyways.

And that's what the US government wants to change in China.

And that's the fundamental difference between these two systems.

If you want to trade with the United States, if you want to have access to the US market, please do not subsidize your companies.

So if we have for example steel companies in China right now, if those steel companies are not being subsidized by the Chinese government, those steel companies cannot sell their steel at the exact same price that they are selling right now.

And that means that they have to raise their prices in order to turn a profit.

And suddenly, steel prices globally are going to rise, and manufacturers in the United States will see, oh, there is an opportunity to make a profit, and somebody is going to open a steel manufacturing company in the United States, and the US will again start producing steel.

But right now, it makes no sense, because if you are going to start producing steel in the United States, and Chinese steel companies are being subsidized very heavily by the Chinese Communist Party, do you think that you can actually stand against China?

Well, you cannot possibly do that, unless the US government is going to support you.

But now they want to check that mentality and apply it to the financial system.

So the global financial system since 1945 have been controlled by the United States.

US banks such as Chase, JP Morgan, Wells Fargo and the rest of them control the entire financial system, and nobody could break that financial system.

What China have been doing over the last 20 years is that they have been taking all of that money and started building a global financial system that is tied to China and is being controlled by the Chinese Yuan.

And the only way they could do that is by actually building all of these banks globally, and those banks right now can operate at a loss, they don't have to turn a profit.

Because they are being heavily subsidized by the Chinese Communist Party.

JP Morgan or a Chinese bank that has unlimited money that comes from the government?

And that's the strategy that allowed China to actually become such a dominant player in the financial system.

The United States does not want the dollar to actually fade away and wants the dollar to keep being the global currency reserve.

But if the trend continues like this, sooner or later, China is going to break up the financial system that the United States has built.

But if the US will be able to push China to sign a deal where they are going to actually be driven by market forces instead by the state, then China will actually not stand a chance against US banks.

The Chinese companies do not stand a chance against Apple.

The Chinese EV companies cannot stand a chance against Tesla and so on and so forth.

And over time, US companies will simply dominate the entire Chinese market and China can possibly forget about the idea of ever becoming a global force that can compete with the United States.

And that's the deal that the United States wants to force China to sign.

Of course, China perfectly understands that and that's why instead of actually coming to Trump and signing that kind of a deal, they are actually waging this war and responding to Trump with the exact same thing that Trump is pushing China, by raising their tariffs.

And as of the time that I am recording this video, they have already raised the tariffs on the United States to 125%.

Maybe by the time this video is out and being uploaded on YouTube, United States is going to raise the tariffs to 200% and then China raises them to 200% and this is going to be a never-ending cycle.

But what if China does not accept the deal?

What if China does not sign a deal with the United States?

What's going to happen to the Chinese economy?

China exports around 450 billion dollars worth of goods to the United States and imports around 143 billion dollars.

With 145% in tariffs, there is not going to be any kind of business between China and the United States.

It doesn't matter what are you going to buy from China.

If at the end of the day you have to pay a tariff of 150%, it's much easier to manufacture anywhere, even in Canada or Mexico, or even you can bring that manufacturing to the United States.

Any kind of entrepreneurs today will actually use AI in order to automate an entire manufacturing plant in order to produce that in the United States.

Because it doesn't matter, you cannot possibly bring that at a profit.

So the entire trade between these two countries is going to disappear and entirely fade away and there is not going to be any kind of trade.

So that means that almost 700 billion dollars worth of trade between the United States and China is going to disappear.

And who is taking the best advantage out of this trade?

And that means that factories in China will have to close down one by one.

Not all of them, of course, but those factories that build and manufacture stuff that are being shipped to the United States.

So you have one factory being closed, second factory being closed, third factory being closed.

Millions of people suddenly will start losing their jobs, and that will actually increase unemployment, that will reduce spending, and that could potentially, not potentially, but will certainly send the Chinese economy into a recession.

And remember, the Chinese economy haven't been in a recession since 1978.

And when there is a recession in a country like China, it can turn like what happened in Japan, where people actually stop spending money, and that can create a deflationary environment where that recession is going to persist not just for a couple of months but literally for a couple of years.

A recession is where you have two consecutive negative GDP growth.

And China had actually GDP growth since 1978.

Even in 2008, when the US economy entirely collapsed and crashed because of the housing crisis, the Chinese economy kept growing.