China Today

 

What's Going On in China?

Recently, Zhongzhi Enterprise Group, a major player in China's shadow banking sector, filed for bankruptcy liquidation due to its inability to pay its debts. This is part of a broader financial strain in China, particularly impacting the real estate sector. Zhongzhi's troubles began surfacing in July 2023 when it started missing payments on investment products, eventually leading to a liquidity crisis​

citizenwatchreport  asiafinancial

Additionally, the property developer Evergrande's ongoing financial woes are contributing to broader concerns about the stability of China's financial system. Evergrande's debt issues have sparked fears of bank runs, although the Chinese government is taking steps to mitigate these risks by assisting banks in managing bad assets and replenishing capital​.  asiatimes

In the past three months, approximately 40 small banks in China have effectively gone bankrupt. These banks were absorbed by larger institutions as part of a government strategy to manage the increasing number of bad loans. The majority of these banks were rural lenders facing high levels of non-performing loans. This consolidation has been largely orchestrated by newly established entities like the Liaoning Rural Commercial Bank, designed specifically to handle distressed banks​.  dailyhodl  fdic

.Jiangxi Bank has recently declared bankruptcy, which has caused significant unrest among its depositors. Protests have erupted as people demand the return of their money. This collapse is part of a broader financial turmoil affecting many small and rural banks in China, exacerbated by a crisis in the property market and rising non-performing loans​.  citizenwatchreport    youtube

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Can China Sustain a War with U.S.A.

The ability of China to sustain a prolonged war with the United States is a complex issue that involves numerous factors, including military capabilities, economic strength, political stability, and international alliances. Here are some key considerations:

Military Capabilities

• China's Military: China has made significant investments in modernizing its military, the People's Liberation Army (PLA), focusing on advanced technology, cyber warfare, and naval capabilities. It has the largest standing army in the world and a rapidly expanding navy .
• US Military: The United States has a highly advanced and experienced military with global reach. It has superior air power, a vast nuclear arsenal, and a strong network of alliances through NATO and other partnerships .

Economic Strength

• China: China has the world's second-largest economy, which provides substantial resources for military spending. However, its economy faces challenges such as high debt levels, an aging population, and a reliance on exports, which could be disrupted in a prolonged conflict .
• US: The United States has the largest economy and a diversified economic base. It also controls major global financial systems and can leverage its economic power through sanctions and trade restrictions .

Political Stability

• China: The Chinese Communist Party maintains strict control over the country, but internal issues like economic inequality, regional disparities, and dissent could be exacerbated in a prolonged conflict .
• US: While the US enjoys a stable democratic system, it also faces internal political divisions that could affect its ability to sustain a long-term conflict .

International Alliances

• China: China has limited formal military alliances but has been building partnerships through initiatives like the Belt and Road Initiative. It could seek support from countries with which it has economic ties .
• US: The United States has a robust network of alliances, particularly through NATO, and strong bilateral relationships with countries in the Asia-Pacific region, including Japan, South Korea, and Australia .

Conclusion

While China has made significant strides in building its military and economic capabilities, sustaining a prolonged war with the United States would be challenging due to economic vulnerabilities, potential internal instability, and the robust network of alliances the US maintains. Conversely, the US faces its own challenges, including political divisions and the need to maintain global commitments. The outcome of such a conflict would likely hinge on various dynamic factors, including strategic decisions, technological advancements, and international responses.

For more detailed analysis, you can refer to sources like The Economist or RAND Corporation.