The next China shock may not stay in China.
China's domestic economy is struggling, but its export machine is running at full speed. @BankofAmerica's Hartnett highlights Chinese exports surging 36% year-on-year, with high-tech exports up a staggering 63%.
The problem is that this industrial strength is increasingly disconnected from domestic demand.
China is relying on foreign buyers to absorb its production, raising the risk of exporting deflation and squeezing corporate earnings globally.
China's domestic economy is struggling, but its export machine is running at full speed. @BankofAmerica's Hartnett highlights Chinese exports surging 36% year-on-year, with high-tech exports up a staggering 63%.
The problem is that this industrial strength is increasingly disconnected from domestic demand.
China is relying on foreign buyers to absorb its production, raising the risk of exporting deflation and squeezing corporate earnings globally.
