2025, Vol. 7, Issue 7, Part B

Author(s): Antony D Miller and Gansukh Tserendorj

Abstract: This article delves into the intertwined narratives of China's real estate crisis and the U.S. agricultural distress resulting from the tariff war post-COVID-19. The Chinese government's failure to address the burgeoning propensity of its youth to relocate to less affluent regions for affordable housing exposes the underlying vulnerability of its economy, as the once-booming property market becomes a potential source of systemic risk. The Chinese Communist Party (CCP) faces a growing challenge to the social contract it established with its people, wherein economic prosperity and stability were promised in exchange for political compliance. The Evergrande crisis exemplifies the precarious nature of China's real estate sector, with the government's "three red lines" policy intended to curb excessive debt precipitating a liquidity crisis for the company. This has led to a loss of public confidence and a significant brain drain, as skilled professionals seek opportunities elsewhere. The U.S., meanwhile, grapples with the consequences of its own economic policies, with farmers in the Midwest experiencing a severe decline in soybean exports to China, leading to a dramatic increase in the cost of essential farming inputs and threatening the rural economy. The trade dispute has also impacted global food security, especially in developing countries dependent on American grain. Despite the proposed aid packages, the long-term viability of the agricultural sector remains uncertain without a strategic re-evaluation of trade policies. Both China and the U.S. are confronted with profound economic and social implications of their actions, necessitating a careful recalibration of their strategies to restore stability and trust within their respective nations and the international community.

DOI: 10.33545/26646021.2025.v7.i7b.592

Pages: 96-107 | Views: 319 | Downloads: 4

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