The article argues that under President Xi Jinping, China has engineered a trade model that fuels its export dominance by significantly boosting manufactured exports while keeping its imports relatively stagnant. This strategy is presented as a response to domestic economic missteps—such as a real estate bubble and a reluctance to stimulate consumer spending—that have weakened internal demand. As a result, China’s massive and growing trade surpluses, especially in sectors like automobiles, steel, aluminum, and clean technology, come at the expense of global manufacturers. In contrast, unpredictable U.S. tariffs under President Trump further destabilize global markets by complicating trade relations and planning for businesses worldwide, leaving many countries dependent on Chinese manufactured goods and vulnerable to Beijing’s political and economic pressure.

Key Points:

• China’s One-Way Trade: Xi’s policies have led to a dramatic imbalance, with manufactured exports growing over ten times faster than imports.
• Domestic Economic Mismanagement: China's focus on investment and construction, rather than consumer spending, has led to issues like a property bubble and stagnant domestic demand.
• Global Manufacturing Dominance: China now plays a leading role in global industries such as automotive production, steel, aluminum, solar cells, and batteries.
• Comparative Analysis: While President Trump’s tariffs add unpredictability to global trade, Xi’s strategic industrial policies ensure that China benefits at the expense of other nations.
• Impact on Global Economy: Other countries face declining export sectors and economic pressure as they become increasingly reliant on Chinese-made goods.

Looks like China’s trade strategy is so one-directional, even GPS systems in China might need a little “re-routing” for global trade!
Link to Article