Top Traders Unplugged

IL42: Redefining Sovereignty in a Borderless Financial System ft. Zoe Liu

15 snips
Oct 1, 2025
Guest
Dr. Zoe Liu
Dr. Zoe Liu, an expert in Chinese state finance and author of 'Sovereign Funds', dives deep into China's evolving financial strategies. She discusses the fading appetite for U.S. Treasuries and how China is diversifying its dollar reserves. Zoe highlights the rise of stablecoins and how they challenge monetary sovereignty, especially in China, where anonymous dollar flows threaten government controls. She also explores China's unique approach to programmable money and the delicate balance of innovation versus state oversight.
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INSIGHT

Persistent Surplus Despite Tariffs

  • China has sustained a persistent trade surplus with the U.S. despite years of tariffs since 2018.
  • Tariffs haven't meaningfully reduced the deficit because exporters and supply contracts adapt to preserve U.S. market access.
INSIGHT

Exporters Reprice Shipping To Absorb Tariffs

  • Chinese exporters shift costs across invoice line items and absorb shipping to preserve orders under tariffs.
  • Lower shipping costs and contract structures help mask tariff impacts on consumer inflation.
INSIGHT

Central Huijin: The Domestic Stabilizer

  • Central Huijin operates as China's domestic financial stabilizer and major shareholder in strategic firms.
  • It deploys state resources to stabilize markets and support strategic industries like BYD.
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