This excerpt discusses the economic challenges facing China, particularly in light of recent US trade policies. The author argues that China's economic system, which prioritizes mass employment through artificially cheap capital and exports to maintain political stability, is fundamentally unsustainable and facing an existential crisis. The imposition of high US tariffs functions as an embargo that severely impacts China's ability to export, its number one consumer, thus threatening its employment-driven model. While a recent US-China "deal" involves lowering tariffs and engaging in talks, the author is skeptical it offers a long-term solution, suggesting it primarily buys China time given the limitations of the US administration's capacity to negotiate and enforce a more substantial agreement.