Eurodollar University HOLY SH*T! You Won’t Believe What Just Happened in China
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Dec 14, 2025 China is facing a dire economic crisis, prompting its government to dump goods abroad to cope with domestic weakness. European leaders are alarmed, calling the trade imbalance a life-or-death issue for their industries. With banking and real estate in decline, China’s past strategies are failing. Global responses, including new tariffs from Mexico, show increasing resistance to Chinese imports. As credit collapses and even banks resort to fake loans, the pressure mounts for China to find solutions or risk significant fallout.
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Massive China-Europe Trade Imbalance
- Trade data show China ran a roughly $360 billion surplus with the EU and UK through November 2025.
- Jeff Snider uses these numbers to explain why European leaders call the imbalance intolerable.
Shrinking Global Pie Drives Protectionism
- A stagnating global economy reduces demand, forcing countries into competitive export behavior.
- Snider links shrinking global growth to rising political tensions and protectionist responses.
China's Record Trade Surplus Signals Dumping
- China's total trade surplus hit about $1.08 trillion through November 2025, a near-record.
- Snider highlights this as evidence China is dumping production internationally to prop up employment and output.