China is back, but that doesn’t mean that the global economy is set for a heady expansion. Although it has served as the engine of growth for the rest of the world for more than two decades, China now plans to be the engine of growth for itself. This should come as no surprise. “Dual circulation” is the stated policy of the Chinese government and post Zero-Covid, the focus will be on increasing domestic demand and high tech production capacity, and becoming a global competitor in key industries.

Recently, I interviewed Brad Setser, trade & finance economist at the Council on Foreign Relations. The Hale Report podcast will be out shortly, but let me share his recent tweet:

Brad Setser @Brad_Setser

While the advanced economies talked about deglobalization, China's auto industry ... globalized. And in a big way. Amazing chart from Gavekal 1/

3:56 PM ∙ Feb 27, 2023

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