Large economies do not generally rely heavily on foreign demand,...
Brad Setser@Brad_Setser
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Oct 21, 2025
~1 min read
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Large economies do not generally rely heavily on foreign demand, tis true. That is what makes China recent heavy reliance on foreign demand significant -- the soaring goods surplus and the unusually large contribution from net exports highlight how China is still relying on exports to offset domestic weakness
x.com/GlennLuk/statu…
x.com/GlennLuk/statu…
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The surge in China's exports of manufactures (which is even bigger in real terms recently as export prices are falling) highlights how China pivoted back to exports as growth driver when investment faltered -- & it is now experiencing a bit of blowback from its trading partners
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This Foreign Affairs piece is somewhat misleadingly titled -- it really is about how the end of debt fueled investment in property risked leading to Chinese economy that doubled down on exports as a source of growth. It has held up well
foreignaffairs.com/china/beijing-…
foreignaffairs.com/china/beijing-…