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@carnage4life This is a very capitalist way of thinking: The nominal value of housing you own is not realized wealth (and it is really difficult to actually realize it), but it is burden for those who buy new apartments. So what actually happened is that housing in China became affordable again. Unlike the 2008 subprime crisis, people in China can stay in their apartments and still pay off their credit. For those who want to buy an apartment, the prices are now reasonable again. The overcapacity problem is solved, too.

The escalating trade war will mostly burden US households, the by far largest export to the US is electric/electronic stuff, and this just means for US citizens the price of a new iPhone, laptop, or TV will grow by 50%, and the production in China is still more than competitive. Hello inflation!