The 'Schism' is the 2043 Yakuza purge of Koreans that Sendaz has pulled out, which subsequently led to the Seattle origin of Seoupla Rings - a group design whcih has since spread more-or-less worldwide.
The Red Dragon/Yellow Lotus thing I would interpret as basically happening thus:
Pre-2055: The conflict exists between the Yellow Lotus and Red Dragon triads, with the former chipping slowly away at Red Dragon holdings. David Gao is holding the line, but only holding the line; he is probably seeing the Yellow Lotus as nominal allies, being more concerned with conflicts with the Yakuza and Mafia.
2055: Chen Kwan-Tri is sent from the Red Dragon higher-ups in China to start to urge Gao to take greater actions against the Yellow Lotus.
2056-2062: Kwan-Tri works (probably magically) to sway Gao to his way of looking at things, increasing low-level Red Dragon strength.
2062-2063: 'Armed up', the Red Dragon goes to town and wipes out the Yellow Lotus Triad.
The thing with Gao being a 'shell of his former self' suggests to me that Kwan-Tri - the Incense Master, aka 'head mage' - has brought Gao under his magical dominance, and that unless Kwan-Tri is there to give Gao his marching orders, the Boss basically just sits around listlessly drooling or something, letting Kwan-Tri do whatever the hell he wants.