Michael Pettis and I talk about China's emergence as a major car exporter, what it says about China, and what it means for Europe. Plus: how and when protectionism works (and doesn't).
This month’s episode digs into the causes and implications of China’s surging surplus in motor vehicles. We also get into a big back-and-forth about how tariffs can work (or not). Check it out!
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On the very low end of the product spectrum, I was able to buy a basic toaster from my local grocery store for only $8. There were 20-30 different toasters on Amazon at $15-35. Are a great deal of China’s manufacturers struggling to be cash flow break even. It seems that a modest slowdown (not even recession) in the US will crush sales volumes of many items from China.
On the very low end of the product spectrum, I was able to buy a basic toaster from my local grocery store for only $8. There were 20-30 different toasters on Amazon at $15-35. Are a great deal of China’s manufacturers struggling to be cash flow break even. It seems that a modest slowdown (not even recession) in the US will crush sales volumes of many items from China.