**China's Economic Turmoil: Challenges and Innovations**

China's economy faces significant challenges as the 10-year bond yield drops below 1.60%, indicating a severe slowdown. This has led investors to seek better returns in U.S. bonds. Concurrently, deflation and a collapsing real estate market, which has lost $18 trillion in value since 2021, exacerbate the situation. The private sector debt exceeding 200% of GDP adds further strain.

Externally, proposed U.S. tariffs threaten China's export-driven economy. However, blockchain and cryptocurrency innovations offer potential solutions. These technologies could streamline transactions and stabilize the financial system, while digital banks are aiding small businesses with advanced data analytics. Despite the hurdles, technological advancements may provide a path to recovery.