China has been making louder noises about the US (and the dollar’s) role in the world economy. “As the largest holder of U.S. debt, China has expressed concern about its investment if the dollar should collapse.”
Hmmm…how did it become our biggest debt holder? By us buying trillions in Chinese exports over the last couple of decades. By us not pushing hard to have a balanced trade balance in return. I did not hear them complain then. Nobody stopped China from buying American products with that surplus. Or having their citizens come and spend money at Disney or Yellowstone.
But seriously, as a major economic power China needs to help the global economy by stepping up its own imports. Cannot just be one-way. It also needs to diversify its exports. Put pressure (and sales talent) on the Europeans, Japanese, Arabs, richer Asian countries to buy more of its products, not be that dependent on the US.
I can feel for Chinese frustration. But my real estate and stocks have also been clobbered. Join the club. I don’t expect magic short term solutions. Much as it is easy to blame Washington, most problems did not start there and will not end there.
