Western neoliberal policies of the 80s were viable without runaway inflation because of a one-time global event: China adding half a billion cheap laborers to the world economy. This massive deflationary force absorbed inflationary pressures, a circumstance that cannot be replicated today.

Unlike in the West, China's economic dysfunctions like industrial overcapacity paradoxically strengthen its global position. This creates massive trade surpluses and investment leverage, forcing other nations to welcome Chinese capital and increasing Beijing's geopolitical heft.

Unlike the US, China expands its influence by offering to build highways, airports, and electrical grids for other nations. This 'soft power' approach, funded by a large trade surplus, has allowed it to gain significant control in regions like Africa without military intervention.

China's economic ascent began when Deng Xiaoping invited American experts to teach them about capitalism. This strategy, combined with becoming the world's manufacturing hub, allowed them to learn the system, grow strong quietly, and eventually become a dominant global power.

The global economy proved more resilient than feared due to three factors: stronger institutions built after the 2008 financial crisis, the private sector's agility in absorbing shocks like tariffs, and the fact that widespread retaliatory trade wars did not fully materialize.

Contrary to common perception, China holds the stronger hand in its relationship with the U.S. As the world's creditor and primary producer, China can sell its goods to billions of other global consumers. The U.S., as a debtor and consumer nation, is far more dependent on China than the other way around.

The widely reported collapse of China's housing market is not an organic crisis but a state-directed reallocation of capital. By instructing banks to prioritize industrial capacity over mortgages, the government is deliberately shifting funds away from a speculative real estate bubble and into strategic sectors like microchips to counter US sanctions and build self-sufficiency.

China's economy presents a stark contrast: a collapsing domestic property market versus a remarkably resilient export sector. Despite tariffs, exports remain strong because China continues to improve product quality and price competitiveness, maintaining global manufacturing dominance.

China's meteoric rise and its massive consumption of global commodities was only possible because it coincided with the collapse of the Soviet Union. This freed up vast, underutilized industrial capacity (smelters, mines) that could be quickly capitalized to meet surging Chinese demand without massive new investment.