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Decoupling the US economy from China’s is essential to strengthening our long-term economic resiliency and national security. Meanwhile, China is doing the same thing—decoupling its economy from ours. Yet China’s export business is booming.
Gavekal CEO and renowned China expert Louis Gave says that China now exports more to other emerging markets than it does to the US and western Europe. Here’s Louis:
“China's trade is absolutely booming. The investments that China made 10 years ago in things like the One Belt One Road, the Silk Road Fund, the Asian Infrastructure Investment Bank, all the things that we laughed at and said, ‘Oh, you want to have trade with Kazakhstan? Who cares? Sure, have it. It's all yours.' The reality is, if you look at the BRICS countries, China now does more trade with the BRICS countries than it does with the United States."
Louis notes that, in some ways, China might be more capitalistic than the US, which essentially stopped allowing companies to fail after the 2008/2009 financial crisis.
Find out more about Louis Gave here:
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Time stamps:
00:00 – Introduction
01:05 – China’s $100 billion trade surplus
08:42 – Why China’s stock market isn’t that important
12:34 – Quest for resiliency
20:52 – How China subsidizes the auto industry
24:06 – China favors competition more than the US
27:16 – Commodities hoarding?
31:15 – The energy trade
36:53 – All the trouble in France
40:05 – Inflation troubles in Japan
