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Pressures On China's Manufacturing Sector Will Impact The West
China is exporting deflation to the rest of the world. That is a favorite quote of one of my favorite economists, Andrew Hunt. The tariff tension between the Trump and Xi administrations has greatly pressured the Chinese manufacturing sector this year. While cutting prices is one way to offset a 25% tariff--possibly the only way--that’s just not sustainable. The laws of economics dictate rising input costs over time, not falling ones, and Chinese manufacturers are feeling the squeeze. The best source of this information is Spencer Fung, CEO of Li & Fung, a Hong Kong-based trading company. In this Bloomberg ... (full story)