# U.S. tech bubble

China’s 2026 Outlook: Yao Yang Sees Stable U.S.-China Ties but Warns Housing Will Decide the Recovery

Economist Yao Yang predicts a period of relative stability in U.S.‑China relations in 2026, arguing that strategic retrenchment in Washington will reduce bilateral volatility. He warns, however, that China’s domestic recovery depends on housing prices and local government spending, and urges large, explicit central fiscal support to revive demand.