⚔ Geopolitics risk-off · 1–3 years
A what‑if from the future

What if China restricts outbound tourism and study to coerce target economies?

China restricts outbound tourism and study to target economies as economic coercion, hitting services exporters reliant on Chinese spending, as seen with Korea and Australia.

12%
our model probability
over 1–3 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 12% · 90% range 3–21% · 35 analogues · measured class trade_war 98% in 3 yr · 3% held back for the unknown
how we built this number — every step
Measured class rate — trade_war ≈1.3449/yr → 98% in 3 yr98%
Analyst prior · editorial share 11% of the class11%
Pooled · weight 85%13%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)13%
Published12%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 1–3 years horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. China restricts outbound tourism and study to target economies as economic coercion, hitting services exporters reliant on Chinese spending, as seen with Korea and Australia. The trigger decomposes into signed root‑shocks — Consumer spending ▼ · Geopolitical risk ▲ · Risk appetite ▼ · Trade tension ▲ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1Volatility (VIX) VIXon Hyperliquid 📈 chartVol▲ +5.9%
hist +0.49–+6.99% · other way +3.23% (n=12)
2Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -3.7%
hist -2.29–-1.14% · other way -0.37% (n=12)
3Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -2.4%
hist -1.55–-0.71% · other way +2.23% (n=12)
4Tech sector XLK 📈 chartEquity▼ -2.6%
hist -1.54–-0.59% · other way -0.34% (n=12)
5Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -2.0%
hist -1.61–-0.33% · other way +4.75% (n=12)
6TSMC TSMon Hyperliquid 📈 chartEquity▼ -1.7%
hist -2.68–+0.15% · other way +2.51% (n=12)
7AMD AMDon Hyperliquid 📈 chartEquity▼ -1.5%
hist -1.03–-0.39% · other way -0.48% (n=12)
8Broadcom AVGOon Hyperliquid 📈 chartEquity▼ -1.5%
hist -1.34–+1.12% · other way +0.88% (n=12)
9Micron MUon Hyperliquid 📈 chartEquity▼ -1.5%
hist -3.21–+0.56% · other way +2.73% (n=12)
10Marvell MRVLon Hyperliquid 📈 chartEquity▼ -1.5%
hist -2.01–-0.03% · other way +1.61% (n=12)
11S&P 500 SPXon Hyperliquid 📈 chartIndex▼ -1.3%
hist -1.32–-0.24% · other way +0.57% (n=12)
12ASML ASMLon Hyperliquid 📈 chartEquity▼ -1.4%
hist -2.67–+0.39% · other way -1.68% (n=12)
13MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -1.4%
hist -2.31–+3.23% · other way +26.92% (n=12)
14Solana SOLon Hyperliquid 📈 chartCrypto▼ -1.2%
hist -2.07–+1.18% · other way +0.89% (n=12)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Cash / hedgeRaise cash and hold the long hedges above; this scenario is net risk-off.
For a common-man portfolio: A typical stock-heavy portfolio is at risk. Consider trimming equities, raising cash, and a small gold hedge.
Also moves (not yet on Hyperliquid): Tech sector -2.6% · Chinese yuan -0.8% · High-yield credit -0.7% · Financials -0.5% · Aussie dollar -0.4% · Lockheed +0.4%

Historical precedent — what analogous events actually did

Across 35 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 Smoot-Hawley clears the US House 1929-05 US-China extend tariff truce by another 90 days 2025-08 Israel strikes Iran — Operation Rising Lion 2025-06 US and China agree Geneva tariff truce, slashing rates 2025-05 October 2024 Iranian ballistic-missile attack on Israel 2024-10 Wagner Group mutiny against the Kremlin 2023-06 Saudi-Russia oil price war 2020-03 Bitcoin Cash hash war capitulation 2018-11 US List 3 tariffs on $200B of Chinese goods finalized 2018-09 US Section 301 List 1 tariffs take effect on China 2018-07 China retaliates: $50B tariff list incl. soybeans 2018-04 US Section 232 steel & aluminum tariffs imposed 2018-03 North Korea sixth nuclear test 2017-09 North Korea 'fire and fury' nuclear scare 2017-08 Mexican peso crash on Trump 2016 win 2016-11 OPEC abandons output defense, opting for market share vs US shale 2014-11 Egyptian revolution / Mubarak uprising 2011-01 US airline stocks plunge ~40% on first trading day after 9/11 2001-09 Hong Kong defends the peg with sky-high HIBOR 1997-10 US-Japan auto trade war: 100% luxury-car tariff threat 1995-05 Soviet August coup attempt against Gorbachev 1991-08 Tiananmen Square crackdown 1989-06 US-Japan Semiconductor Trade Arrangement signed 1986-09 1986 oil price collapse 1986-02 Japan agrees to auto voluntary export restraints 1981-05 Reagan assassination attempt 1981-03 Gold peaks at $850 1980-01 Iran hostage crisis / US freezes Iranian assets 1979-11 JFK assassination 1963-11 Cuban Missile Crisis 1962-10 Korean War begins 1950-06 Smoot-Hawley Tariff Act signed 1930-06
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
COIN COINLONG+17.9% · 5d +6.5%88%7 0.63⚠ differs
TRY TRYSHORT-1.6% · 5d +0.4% ↺ fades80%19 0.50✓ matches cascade
ETH ETHSHORT-6.1% · 5d -8.1%71%14 0.33✓ matches cascade
CNY CNYSHORT-0.7% · 5d -0.2%67%20 0.33✓ matches cascade
SOL SOLLONG+2.0% · 5d -11.7% ↺ fades75%7 0.30⚠ differs
XCU XCUSHORT-1.1% · 5d -0.3%67%20 0.29✓ matches cascade
NVDA NVDASHORT-0.6% · 5d -3.5%65%20 0.22✓ matches cascade
INTC INTCSHORT-1.8% · 5d -1.5%63%28 0.22✓ matches cascade
AUD AUDSHORT-1.0% · 5d -0.3%63%19 0.20✓ matches cascade
INR INRSHORT-0.5% · 5d +0.0% ↺ fades61%19 0.18✓ matches cascade
KRW KRWLONG+0.0% · 5d -0.3% ↺ fades61%19 0.18⚠ differs
KWEB KWEBSHORT-1.6% · 5d -0.8%62%18 0.18✓ matches cascade
GBPUSD GBPUSDLONG+0.1% · 5d -0.1% ↺ fades61%19 0.17⚠ differs
AVGO AVGOLONG+1.8% · 5d -2.2% ↺ fades59%19 0.16⚠ differs

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.