Monday, April 20, 2026

An Update on 'China Shock'

The Unlikely Recovery of America’s China-Shocked Towns
https://www.nytimes.com/2026/04/20/opinion/america-manufacturing-recovery-china.html

What Really Drives China’s Massive Trade Surplus
https://www.project-syndicate.org/commentary/how-to-fix-china-massive-trade-surplus-by-shang-jin-wei-2026-04
China’s trade surplus is often blamed on its industrial policies. In reality, however, it reflects a persistent gap between savings and investment, driven by demographic pressures and financial constraints that shape household behavior and restrict private firms’ access to credit.


Related:
The ‘China Shock’ Offers a Lesson. It Isn’t the One Trump Has Learned.
https://www.nytimes.com/2025/04/11/business/economy/tariffs-trump-china-shock.html
Economists say the U.S. manufacturing decline in recent decades was not mainly about free trade, but about the pace of change without time to adjust.

How the U.S. Lost Its Place as the World’s Manufacturing Powerhouse
https://www.wsj.com/economy/us-manufacturing-decline-service-economy-ee97a1e2
Trump says his tariff plan will restore American manufacturing might, but economists are skeptical.