Which brings us to China. It is always claimed that China is diversifying internally as well as externally. The country has signed trade agreements with a number of other countries and on the inside the economy is being rebalanced toward domestic consumption. We are told these are intentional acts, proactive policies designed to wean China off particularly US demand for Chinese manufactured goods.
And yet, after so many years hearing all this it remans perfectly clear how Chinese economic fortunes are still tied very closely to those of the United States. If the US isn’t buying what China wants to sell, none of the rest matters.