The Transom, Ben Domenech, March 9, 2017

The real trade challenge is Germany, not China. See here for more. “The WSJ makes the important point that Germany is abusing the world trade system in a way that China and Mexico are not. Whatever may have been the case in the past, China is not depending on an undervalued renminbi to prop up its exports; if anything, China is worried that its currency will fall too low. And globally, Mexico is running a trade deficit—though like most countries, it has a surplus with the United States. By contrast, Germany’s policies in Europe contribute to a massive undervaluing of the euro, and German exporters are therefore able to enjoy huge international sales that, without the currency distortion, they could not achieve.”