Sandra Harris2 said:The Chinese don't actually need to launch a military invasion.
China plays the long game.
They can simply encourage people to settle in specific regions. They can pour investment into those areas, especially when you consider the need to beef up gas export infrastructure.
Using economics and demographics as a weapon.
And then, following the Russian playbook used in Donbas, they could stir up separatists or organize a referendum like they did in Crimea.
The reality is that China is facing massive internal crises. To start with, they have enough vacant housing in these so-called "ghost cities" to accommodate over 60 million people—places where absolutely nobody actually wants to live. On the flip side, their major metropolitan areas are dealing with a real estate bubble that makes the 2008 American subprime crisis look like a soap bubble. While you might need about 13 average annual salaries to afford a median home in New York, in places like Beijing, Shanghai, or Shenzhen, you’re looking at upwards of 40 years' worth of income. Two-thirds of the major real estate giants have already crossed at least one of the Communist Party's three red lines; Evergrande, sitting on a mountain of debt exceeding $300 billion, has failed all three and is effectively incapable of taking on more debt or even finishing the projects they currently have underway. We've seen over 1.5 million Americans—well, Chinese citizens—stop paying mortgages on unfinished developments where construction has simply ground to a halt, which, when combined with the debts of these property behemoths, puts the entire banking system at risk. Four banks in Henan province have already collapsed, and we've seen tanks deployed to deal with the resulting protests. Furthermore, provincial and municipal budgets are incredibly dependent—in some cases, over 80%—on revenue from selling land to developers, yet the number of new projects is cratering along with apartment sales.
Construction accounts for over 30% of China's GDP. When the Spanish real estate bubble burst about 14 years ago, that sector accounted for 24%, and they still haven't fully recovered. Add to that the fact that the zero-COVID policy is wreaking havoc on their industrial sector, yet Xi continues to double down on it. Supply chain disruptions and general instability are driving away foreign investment, leading many Western corporations to plan a "near-shoring" exodus to bring production closer to home.
Ultimately, I suspect China will mostly play dead during this conflict. They'll snatch up any business opportunities that arise from their relationship with Russia, but they'll be careful not to jeopardize their ties with the West. That said, we shouldn't rule out a domestic Lehman Brothers-style meltdown occurring within China.