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By sharply accelerating in recent months its trade adjustment with the U.S., China has finally done what it should have initiated more than two years ago.
Beijing is on the way to seriously dismantling Washington’s economic and political leverage over China’s economy. During 11 months of last year, China stepped up the rate of decline of its trade surplus with the U.S. to 16.2%.
Sinologists - Misnomer - China - Exit - Position
Feverish sinologists would call that “decoupling” — a misnomer for China’s belated exit from a position of an excessive and unsustainable trade surplus with the U.S.
Those sinologists don’t seem to notice that China is getting out of that self-imposed structural trap by aggressively slashing its U.S. purchases at an annual rate of 12% between January and November of last year.
Decoupling - Advocates - US-China - Ties - Beijing
Instead of worrying about “decoupling,” advocates of friendly U.S.-China ties should remind Beijing that it should be doing exactly the opposite — by drastically stepping up imports of American goods and services. If the Chinese did that, they would not have to abandon their U.S. markets by cutting exports at an annual rate of 15.2%, as they did for nearly all of...
(Excerpt) Read more at: CNBC
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