Over the past few decades, China has undergone an industrial revolution on steroids. Millions of people moved from rural areas to mega-cities, driving insane demand for real estate. Property prices soared up to 8x in just 20 years. It’s reminiscent of the U.S. before the 2008 crash, Japan in the '90s, and even Israel today.
But bubbles don’t last forever. Recently, China’s real estate bubble began to burst. Evergrande, once the second-largest property developer in China, collapsed, triggering a massive domino effect. Millions were left with unfinished homes and mounting debt. It smells a lot like the chinese version of 2008.
To avoid total economic collapse, China’s central bank (PBC) quietly started injecting liquidity into the banking system. In March alone, over 800 billion yuan (more than $100 billion) was funneled into the banks, essentially stealth money printing, even if it’s not called that outright.
When central banks print money in federal-style systems (as most countries do), the result is usually the same: purchasing power erodes, the local currency weakens, and capital flows into financial assets like stocks and bonds. But today, as we saw with the COVID stimulus in the U.S., that money increasingly finds its way to Bitcoin and gold.
Now, enter Trump. He views China as the main threat to U.S. dominance. Russia is bogged down in war, Europe is in recession hence China is the real competitor. Trump has always been openly anti-globalization and has pushed to bring manufacturing back to the U.S. Recently, he announced steep new tariffs on foreign imports. At first glance, it looks like a reckless move. The media and “experts” were quick to mock it as childish or impulsive. But there’s more happening here.
Quietly, world leaders have started making visits to the White House to cut private trade deals with Trump. And he’s welcoming them, opening the door to negotiations and balance. So why shock the global markets with tariffs in the first place?
Because tariffs hit one country harder than anyone else: China. No one exports more goods (not services like tech) than they do. And that’s where they’re most vulnerable. China’s real estate is collapsing, and its economy now leans even more heavily on exports to stay alive. Trump’s tariffs target that exact weakness.
By raising costs on Chinese goods in the U.S., he’s putting direct pressure on Chinese factories, which in turn squeezes the broader Chinese economy. It’s a calculated move designed to force China into better trade and political deals that favor the U.S.
Now, with real estate no longer safe, and Chinese stocks unstable, where does all that newly printed money go? If not into real estate or local equities, the logical answer is: assets beyond the reach of the Chinese Communist Party.
Bitcoin and gold.
Trump seems to have seen this coming. He’s recently spoken publicly about U.S. gold reserves and even discussed the topic with Elon Musk. His administration has floated the idea of building Bitcoin reserves as part of a broader economic strategy. It’s a hedge against the volatility this trade war is bound to unleash.
Trump’s objective is simple: apply enough economic pressure that China is forced to compromise. He’s betting that their economy is fragile enough to blink first, especially in the short to medium term. And soon, you’ll hear talk not just about commodities, but also semiconductors and chips.
In the long run, China may recover and regain momentum. But for now, Trump wants to squeeze every drop of leverage out of this crisis to solidify America’s position as the world’s leading power.
We’ll see how it plays out. But if you’ve experienced the recent market turmoil firsthand, you’ll feel that something is different this time. Gold is hovering near all-time highs, and Bitcoin remains remarkably stable around $80,000, even as global markets show signs of cracking.
In a world rushing toward de-globalization while still quietly running on global trade, those who understand this contradiction are moving into global, neutral assets, hedges against inflation, currency instability, and the uncertainty of commodity flows.
Watch closely. Don’t be swayed by flashy headlines or loud clickbait.
Much love 💛