Jester
I like your ideas and see them as perfectly plausible. However, depending on the level of isolation for China, it can be extremely different.
If Russia doesn't close commercial relations with China, things can turn a very different way. The groups you are talking about can start to have a very had time.
Commercialy, the situation can become more complex. Russia can provide China with more than enough raw materials in exchange for a wide variety of industrial goods (what Russia lacks). Then, with enough raw materials to keep its industry working, China could not face so much unrest and under wise leadership, it can chose to turn to its own population to sell a majority of its products.
Then, I don't think that western economy would collapse (also it could). It would, however, face a crisis that could be very long and damaging and need time to recover. As we just seen, stock exchange can make the entire western world go down and we have done very little (to these days) to correct this.
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