The West complaining about another example of the "decoupling" they wanted. It is the West that doesn't think about what their actions do to the world. They have a live-with-it attitude when what they do that impacts the world and here they're just displacing what they've done on China. Complain about cheap Chinese steel flooding the world before and now complaining China is holding back.
A good few of the financial folks in twitter I follow thinks that China is secretly waging an economic war by slowing or shutting down domestic production through lockdowns. I wouldn't be surprised that the lockdown served a dual purpose, but this strategy is also negatively affecting China's economy.
That's pretty stupid. You don't win an economic war by cutting off your supply to the enemy. You win by cutting off their supply to you and replacing it with domestic producers.
Yeah It's counter-intuitive, they say the goal is to disrupt and congest the ports in US even further to disrupt their supply chain and slow down their manufacturing, since a lot of their manufacturing relies on parts supplied from China. The trick is to time the disruption and bring back the production up later, just enough that it won't incentivize them from moving away from relying on China, but stack up the pressure in US manufacturing and trade to derail their recovery, and wait for something to break.
@Coalescence Bro the Ukraine War may have hasten the DUAL Circulation strategy, With cheaper input from Russia and Iran, the core CPI will be stable as Energy is a major driver of Inflation in the modern economy, couple that with gov't regulating of import & export of key commodities like food staple may boost internal consumption and stimulate the local economy as majority of China SME are from restaurant, and agri business.
I can see the dual use for lockdowns, if both parties assume they are at war then all what matters is that the opponent suffers so much more than you do. You hope your opponent fucks up and breaks first to the economic pressure.
They still want decoupling but on their terms; and where they can inflict the maximum possible damage.They forgot that the law of unintended consequences still exists.
