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Brad Setser questions the notion that China, as the world's second largest economy, is entitled to ongoing growth by relying on net exports.
He highlights that trade has traditionally been viewed as a two-way exchange rather than allowing one country to grow primarily through persistent trade surpluses.
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Setser has previously noted that China needs large-scale exports to balance increased domestic supply, raising concerns about global trade imbalances in a recent analysis. In a separate piece, he highlighted how U.S. multinational tax strategies through Ireland substantially affect Eurozone external data and IMF assessments, as detailed here. These observations add context to the ongoing debate over the sustainability of China's export-driven growth.