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  • China will overtake the United States is the world's largest economy by 2035.

  • While the US GDP grew by less than 2% China's GDP grew by over 4.4% in 2022.

  • This graph perfectly illustrates of fast China is taking not just the us but the world.

  • While its neighbors such as Japan that has the best chance to compete with China is stuck for decades.

  • Its military budget grew from $22 billion 2000 to almost $300 billion 2021.

  • Making European powers like Russia France or UK that once dominated the world irrelevant.

  • It hasn't just turned into a factory that supplies the world with cheap materials but has risen to produce high tech electronics from smartphones that compete with iphone to electrical cars.

  • That would put Tesla to shape its marvelous infrastructure projects has put us to shame or it can't even finish the California high speed railway.

  • It's building roads, ports, cities across africa, expanding its soft power across the globe and making the world ever more dependent on china.

  • It has launched belt and road initiative and already spent over a trillion dollars across the globe, making it the largest global project in the world.

  • It built some of the wealthiest cities in the world in just a few decades.

  • It's United States largest trade partner.

  • But underneath this great success there is a harsh reality, a reality that china doesn't want you to know when you look deep inside china, you realize that china is suffering from crisis is that it still doesn't know how to solve its to the tech problem or a financial crisis, although China is on the brink of a financial catastrophe.

  • But it's still solvable to a certain extent.

  • China's real problems are beyond what many of you think China is running out of water.

  • Its energy sector is about to collapse, which is putting its food supplies at risk.

  • These three crises are about to destroy everything that China has achieved in the last 30 years.

  • And if you combine that with unprecedented population crisis, then you have a perfect recipe for a disaster, a disaster that could bring China's $18 trillion dollars GDP to its knees.

  • But before we do that, give this video a thumbs up and let's dive in.

  • The situation has gotten bad enough to cause huge shocks here in the US now the S&P 500 just wrapped its worst years in the 2008 crisis.

  • And Bank of America is warning that it could flatline this year, flatline the market is demanding a much more active approach.

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  • And now let's get back to the video China's economic success came at a huge cost.

  • A rapid urbanization and industrialization led to pollution and damaged many of its rivers.

  • In the last 20 years alone, almost 28,000 rivers had vanished, making the already huge problem.

  • Even worse rivers are the bloodline of any society.

  • Whenever you look at the world, communities have always emerged across rivers that turned into cities and eventually countries.

  • Because water is the foundation of life China has over 20% of the entire global population, but only 6% of fresh water reserves and since 2013 at least half of China's water reserves are considered inappropriate for human consumption.

  • Which puts the entire future of the country at danger.

  • The water scarcity threatens the very survival of the Chinese nation because without fresh water, the agriculture sector will suffer, which will create a shortage of food, especially when you have a population of 1.4 billion people China already once went through a food crisis.

  • It didn't go well in just three years.

  • From 1958 to 1961, some 30 million Chinese starved to death and about the same number of birth was lost or postponed.

  • China currently consumes around 600 billion cubic meters of water annually, which is not sustainable based on how much reserved it actually has, but based on projects is its consumption is only going to grow to at least 800 billion cubic meters by the end of the decade.

  • How China is planning to solve this crisis is a question.

  • Even China doesn't have all of its attempts so far has failed.

  • Geography isn't always playing to china's favor.

  • The absolute majority of china's population lives in the northern eastern side of the country, where most of the farmland is located, but that's not the case with its rivers.

  • Most of china's water supplies are located in the southern part of country.

  • So the CCP tried to change that by building a $62 billion south north water transfer project.

  • The aim of the project or to divert 45 billion cubic meters of water per year from Yangzi River in southern china to the Yellow River, which is its second largest river since the Yellow River has already decreased by more than 90% which is making the water crisis in the north even worse For the context, when the project completes, it will be the largest water diversion transfer project ever undertaken.

  • It has already taken 50 years to plan and begin construction and one finish until 2050.

  • In Beijing, for example, two thirds of all water comes from the groundwater, but due to pollution over 80% of water in the North has became undrinkable that had such a serious impact on China's agricultural potential.

  • That a decade ago, China became the world's largest importer of agricultural goods.

  • Its arable land has been shrinking due to pollution and water shortages.

  • To top it off, water is heavily subsidized by the government, so water is not effectively used in the country since it's cheap because of the government subsidies.

  • The government understands that it needs to lift those subsidies to increase water consumption efficiency, but that could hurt china's growth.

  • The whole narrative in china is that people won't intervene in government at first while the CCP guarantees the annual GDP growth numbers.

  • So, by lifting government subsidies, the CCP could risk its reputation and the social contract, it has with the people.

  • Water shortages leads to other problems, such as a shortage of energy.

  • China consumes over 80% of its energy from coal, but to produce energy from coal, you need a lot of water, which puts the entire country's future at risk.

  • Factories across China such as Tesla and Apple had to shut down due to energy cuts, halting production.

  • The question that many of you are probably wondering is why china can't shift the wind and solar when the renewable energy solve the problem.

  • Unfortunately, china is unlucky with the geography, as we have mentioned before.

  • Almost entire chinese population live in the east side of the country closer to the coastline.

  • Well, most of the wind is mainly in the west side of the country.

  • The same goes to the sun rays.

  • They're mostly in the southwest of the country, transporting the energy to the eastern side of the country makes the whole process inefficient with most of its rivers drying up china can't even rely on its dams to generate enough electricity, which is why coal is its main source of energy.

  • In 2023, where the world is shifting to renewable energy, most of China's energy consumption comes from coal more than 62%.

  • While gas and oil make only eight and 20% respectively.

  • So despite that, Russia has been selling oil and gas to China at a significantly lower price than market price.

  • It is still not solving the crisis and just giving Beijing a little more time.

  • But Russia's invasion of Ukraine created a different problem since Russia.

  • Cat supply of gas to Europe Europe was forced to go back to its coal plants, increasing the demand for coal, which means higher prices, prices rose from $70 in 2019 to over $400 by 2022.

  • Imagine for a moment, how strongly that hit China's economy that relies heavily on coal as its main source of energy.

  • Coal is the backbone of China's economy and its at stake coal prices are insanely high and domestic production requires a lot of water.

  • With China doesn't have about 250 liters of fresh water is required per ton of coal production.

  • China is in the products.

  • Its ultimate objective is to be wolves superpower, but it's never going to achieve that if at the end of the road, it will find itself and lacking the energy and fresh water since they are the main components of functioning economy.

  • But if it focuses on solving these problems, then its annual GDP growth won't be as impressive as they have been in the last three decades.

  • That could question the legitimacy of the chinese Communist Party, creating turmoil in the country.

China will overtake the United States is the world's largest economy by 2035.

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