China cannot afford a scenario where the US successfully containing it and cutting off market access, because China's revenue collapse would be catastrophic given its extreme leverage (2-3x more debt growth than the US) and lack of external demand for yuan; China must either sell internally at lower prices or face currency debasement.
causalpending
Speaker
Brent JohnsonEvidence Quote
“China cannot sell all of their inventory internally or even locally in their region at the same prices... if their revenue falls, the revenue cannot cover all that debt that's been taken out... China has borrowed a lot more money than the United States has. Their economy has levered two or three times more.”
Created: 8/11/2026, 6:17:41 AM
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