The China Trade Problem That Tariffs Alone Can't Fix

AI Summary

China ran a $1.2 trillion trade surplus last year with exports growing significantly faster than the global economy. Former US Trade Representative Michael Froman discusses the challenges posed by China’s economic model under Xi Jinping and the potential consequences when demand from global buyers diminishes.

China ran a $1.2 trillion trade surplus last year, many of its companies don't need to make a profit, and its exports are growing at two to three times the rate of the global economy. Michael Froman, former US Trade Representative under President Obama and now president of the Council on Foreign Relations, tells us why Xi Jinping sees a consumer-led economy as a political threat, and what happens when China finally runs out of countries willing to buy. (Source: Bloomberg)