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“... they face unpleasant questions from the US Department of Commerce.But,​ as Matthew Klein and Michael Pettis argue in their brilliant polemic Trade Wars Are Class Wars, industrial policy instruments are only part of the story. The more fundamental reason for the Sino-American trade imbalance is macroeconomic. When we look at the world economy as a ...”

“... 85 per cent of their trade in dollars.In Trade Wars Are Class Wars (2020), Matthew Klein and Michael Pettis showed that the US functions as the world’s importer of last resort – absorbing the trade surpluses of Europe and China – and that the American working class pays the price. But they didn’t discuss the power that accrues to the US ...”

“... bargain with the US, in which China would essentially subsidise American consumption. According to Michael Pettis, an economist at Peking University, Until recently, excess US demand and excess Chinese supply were in a temporarily stable balance. As part of running a trade surplus, China necessarily accumulated dollars, which had to be exported to ...”