China faces domestic demand problems from multiple directions. At the same time its costs advantage over the rest of the world is surging: 1. Popping of a real estate overhang that will exert downward pressure on demand and prices for many years to come. Negative wealth effects continue to drag on the relative well off. 2. Adoption of AI is fast. But so is the at least short term destabilizing impact on jobs (particularly entry level jobs), and jobs security. 3. There are well documented gaps in social security net for the massive aging rural population. 4. Deflation means that domestic competition, which was already cutthroat, becomes more cutthroat. Firms are drawn outwards to exports market for fatter margins, aided by domestic deflation and increasing direct to consumer tactics that cut out many foreign intermediaries that traditionally benefited from trade in previous wave of globalization. My view is that the world will have trouble absorbing the goods vacated by US demand.