The Chinese economy is in a “near-collapse” state, characterized by high youth unemployment and a plummeting fertility rate, despite officially reported GDP growth. This growth is sustained primarily by a massive trade surplus and net exports, rather than domestic demand. This external reliance is achieved through aggressive price reduction and an increase in average labor hours, indicating severe involution and declining corporate profits. The strategy is vulnerable to foreign retaliation via trade barriers and tariffs. Moreover, this export model is ultimately constrained by the limited purchasing power of target Third World countries. The underlying domestic issue is weak internal circulation and the population’s inability to consume due to economic pressure, leading to the cultural phenomenon of “lying flat.” The continuation of this forced, high-effort model faces limits from both international trade tolerance and the endurance of the domestic populace.
