Xi is Making the World Pay for China’s Mistakes
My recent essay in the New York Times argues that China’s rising surplus in manufactures is a real threat to the global economy.
It is hardly news that China is an export powerhouse.
But over the last six years, it has become an economy that exports without really importing any manufactures—exports of manufactures rose $175 billion on average, while imports of manufactures are up only $15 billion on average. Export volumes are now growing much rapidly than import volumes and net exports are contributing bigly to China’s growth. Moreover, this unbalanced expansion of trade directly reflects China’s own policy choices during and after the pandemic.
I explore these issues in my recent essay in the New York Times. It concludes:
“Mr. Xi has a one-way vision of trade. Mr. Trump often sounds as if he doesn’t believe in any trade. Between the two of them, the global economy is in for a rough ride.”
Do take a look.