In yesterday’s post, I wrote about how China is winning the global trade war. Exports to the US are nearly back to where they were before President Trump imposed further tariffs in early 2025, even as China’s exports to everywhere else have literally exploded. There’s nothing good about any of this. It stems from China’s heavy-handed industrial policy and chronic currency manipulation, which means the Yuan is very substantially undervalued. Factor in how much China has done to support Russia since it’s invasion of Ukraine and you have to wonder why the world puts up with this. On the surface, a lot of this is about ... (full story)