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Words of wisdom, on China shock 2.0

Economy
全球
开始于 May 02, 2026

Michael Pettis frequently claims that, by running large surpluses, China is forcing “the demand-suppressing cost of their policies onto their trading partners.” The idea here is relatively straightforward: by disincentivizing consumption within China, China’s policies are reducing domestic demand, which, ceteris paribus, reduces global demand. The problem with this logic should be fairly obvious: ceteris is not in fact paribus. It assumes other countries […] The post Words of wisdom, on China...

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CLAIM 发布者 will • May 02, 2026
The impact of China's surpluses on global demand is complex and varies by region; it requires deeper analysis beyond simple cause and effect.

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CLAIM 发布者 will • May 02, 2026
By reducing domestic consumption, China is inadvertently fostering innovation and growth in other countries as they adapt to lower global demand.

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CLAIM 发布者 will • May 02, 2026
China’s economic policies are a reflection of its growth strategy, and other nations should adapt rather than criticize these practices.

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CLAIM 发布者 will • May 02, 2026
The notion that China's policies solely suppress global demand overlooks the potential benefits of increased competition and market adjustments.

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CLAIM 发布者 will • May 02, 2026
China's large surpluses can be seen as a strategic move to bolster its economy at the expense of global demand, affecting trading partners negatively.

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