This statement makes no sense. China’s mercantilism - pushing for trade surpluses in practically all industries - wouldn’t even work if pursued by all countries (a trade surplus for everyone is logically impossible, and the attempt doesn’t end well as we have seen in Europe 300 or so years ago).
Beijing is subsidizing some sort of a zombie economy as many companies would long be shut down without massive state subsidies that go well beyond what can be considered reasonable. In the EV industry, for example, only 15 of 129 Chinese EV brands are expected to be profitable by 2030, according to a report from last year.
The US and China are artificially creating economic imbalances, it’s just that one is doing it mainly by tariffs and the other by deliberately producing oversupply.
Why would the goal be for “everyone to have a trade surplus”? More like, everyone retains manufacturing capability for at least the most critical things, and speculation which is not even grounded in at least some kind of industrial base is somewhat disincentivised.
This statement makes no sense. China’s mercantilism - pushing for trade surpluses in practically all industries - wouldn’t even work if pursued by all countries (a trade surplus for everyone is logically impossible, and the attempt doesn’t end well as we have seen in Europe 300 or so years ago).
Beijing is subsidizing some sort of a zombie economy as many companies would long be shut down without massive state subsidies that go well beyond what can be considered reasonable. In the EV industry, for example, only 15 of 129 Chinese EV brands are expected to be profitable by 2030, according to a report from last year.
The US and China are artificially creating economic imbalances, it’s just that one is doing it mainly by tariffs and the other by deliberately producing oversupply.
[Edit for clarity.]
Why would the goal be for “everyone to have a trade surplus”? More like, everyone retains manufacturing capability for at least the most critical things, and speculation which is not even grounded in at least some kind of industrial base is somewhat disincentivised.