• TwoTigers24, New York
  • October 19, 2026

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In today’s video, we explore why China’s export model — and its wider economy — now appears to be unravelling, as multiple problems all hit at the same time.The biggest shock came in November, when China’s exports to the United States collapsed by almost 30% following the latest round of American tariffs. This is one of the sharpest declines on record, and it removes China’s most profitable and strategically important customer almost overnight.To keep its factories running, China has been pushing huge volumes of goods into Europe, Africa, Southeast Asia and Latin America. Overall export numbers look positive, but only because China is flooding global markets with ultra-cheap products that can no longer be sold in America.We break down the broad percentages of where these exports are now going — including the EU’s rapidly growing share — and look at why Europe has suddenly become China’s most important high-income market. But that shift is already creating a political storm, with European leaders warning that their industries are being undermined by a surge of low-price Chinese imports.At the same time, China’s producer prices have been falling for almost three years, squeezing profits and forcing manufacturers to cut prices just to keep goods moving. Sales may be rising, but profits are falling sharply — a key sign of industrial stress.We also examine China’s weak domestic demand, the ongoing property crisis, and the deeper structural issues that mean China can no longer rely on its home market to absorb production. That leaves China dangerously exposed if Europe follows the U.S. in imposing new tariffs.All of these pressures together show why China is unravelling, and why the consequences could be significant not just for China, but for the entire global economy.For specific details please check out the CHAPTER list below. Thanks for watching and please LIKE and SUBSCRIBE.Chapters:0:00 Intro1:58 EXPORTS4:20 PRODUCER PRICES6:14 IMPORTS7:29 RETAIL SALES8:05 INFLATION9:55 SUMMARY & CONCLUSION

Author

YNOT — Two Tigers Consulting From Building Bridges to Watching China About 15 years ago, I founded a small company called Two Tigers Consulting with a relatively simple idea: help American and Chinese businesses work together. At the time, China represented one of the greatest business opportunities in the world — a rapidly expanding economy, extraordinary manufacturing capabilities, and ambitious entrepreneurs eager to build relationships with American companies. Two Tigers Consulting was created to help bridge that gap. For a while, it worked. We attended trade shows, arranged meetings, and introduced companies across both cultures. But after one particularly promising trade show, several Chinese businesspeople we had met were reportedly arrested upon returning to China — apparently for traveling without proper authorization. That experience taught me something important: in China, being a successful entrepreneur doesn't necessarily mean being free to conduct business. As Xi Jinping consolidated power and the political environment shifted, we concluded the potential rewards of doing business in China no longer justified the risks. Rather than abandon our knowledge entirely, Two Tigers evolved into a platform for following, discussing, and analyzing developments inside China — its economy, political leadership, and increasingly complicated relationship with the United States. I want to make absolutely clear that I have tremendous respect for the Chinese people — their entrepreneurs, engineers, and workers are extraordinarily capable. But I also believe China's political system creates fundamental contradictions: enormous private fortunes can be accumulated, yet ultimate political authority remains firmly concentrated, making relationships based on mutual trust and predictable rules extremely difficult to sustain. Today, Two Tigers is an independent publication examining China's achievements, challenges, ambitions, and contradictions — where they intersect with the United States and the broader world. What began as a small business venture now attracts roughly 10,000 visits a day. Understanding China is no longer optional: what happens there affects businesses, economies, and people throughout the world. And that is why Two Tigers continues.

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