Supply Shock cover image

Is It Time To Be Bullish? | Weekly Roundup

Supply Shock

NOTE

Redrawing Export Partners and Effects on China

The weakening of the Japanese yen compared to the Chinese yuan is leading to a shift in export partners, with the US potentially moving towards buying more from Japan than China. This shift is contributing to deflationary pressures in China, causing overcapacity issues and a need for China to weaken the yuan to remain competitive. This change may establish a new regime where Japan becomes a stronger export powerhouse relative to China. The scenario could prompt the US to devalue the dollar and rebuild its manufacturing capacity.

00:00
Transcript
Play full episode

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner