⚡️ Part 2: The Rise of China and the Consequences of Dependence

Based on the logical thread from Part 1, we see a rule: China has fully utilized foreign "brain power" to build internal strength. However, this journey has also led to consequences and the current pivot:

• From "Copying" to "Mastering": After absorbing technology from Taiwan, China did not stop at assembly (Foxconn) but moved on to self-sufficient chips, electric vehicles, and AI. This creates direct confrontation with the old "teachers".

• Real Estate Trap & Double Interest Rates: The model learned from Li Ka-shing once helped Shenzhen become a dragon, but it also created the current "debt bomb" in real estate (Evergrande is an example). When double interest rates do not accompany real income growth, it becomes a burden that erodes the people's strength.

• Supply Chain Shift: As Chinese labor costs rise and geopolitical tensions escalate, "dragons" like Taiwan and South Korea begin to withdraw capital to Southeast Asia and India.

📉 Forecast 2026: Gold, USD, and Real Assets

As China's debt and real estate-based growth model faces difficulties, the world will witness:

1. Stagflation: Currency depreciation due to economic stimulus packages.

2. Gold & BTC: Continue to be safe havens as confidence in the banking system and fiat currency declines.

3. "Warrior" Mindset: Like the story of Sheikh Rashid, countries/individuals too dependent on the "ease" from borrowing will face a very fierce "Camel" phase.

HTNK