The hottest International Trade Substack posts right now

And their main takeaways
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Top World Politics Topics

The Pettis Paradigm and the Second China Shock

Noahpinion • 16059 implied HN points • 16 Jan 25
💰 Finance International Trade Macroeconomics Economic Policy
  1. China has a large trade surplus, which is complex and not solely based on traditional economic theories. Many think its economy is getting help through government loans and subsidies.
  2. There are many opinions on how to deal with China's trade practices, especially the idea of using tariffs. Some believe that tariffs can help change China's focus from exporting to better domestic consumption.
  3. Economics is complicated, and experts often disagree on how to fix trade issues. Current solutions might not work as intended, and some past policies have not improved the situation as hoped.

Five possible reasons China's productivity slowed down

Noahpinion • 15529 implied HN points • 28 Dec 24
💼 Business Economics International Trade Productivity Corporate strategy Market Trends
  1. China's productivity growth has slowed down due to hitting natural limits in technology absorption and an aging population. As they reached the tech frontier, it became harder to improve productivity at the same pace.
  2. R&D productivity in China is low, especially in state-owned companies. The focus has shifted to quantity over quality in research, leading to many low-quality studies and less innovation.
  3. China's economy is heavily reliant on investment rather than consumption. Unlike the U.S., which benefits from high consumer spending, China may be missing out on productivity gains from a robust consumer market.

Will the China Cycle Come for Airbus and Boeing?

Construction Physics • 33196 implied HN points • 23 Oct 24
💼 Business Aerospace Manufacturing Technology Economics International Trade
  1. China has been trying to develop its own commercial aircraft industry for decades but faces many challenges. From technology theft concerns to complex manufacturing processes, it hasn't succeeded like in other industries.
  2. The C919 jet is China's latest attempt to compete with Boeing and Airbus. While it's secured a good number of orders, issues with performance and certification limits its appeal in the global market.
  3. Airbus has been more successful in China due to establishing local assembly lines. This made them more competitive compared to Boeing, which hesitated to set up operations in China.

Chartbook 348 Dollar-like: eurodollars, crypto and the future of global money.

Chartbook • 1101 implied HN points • 25 Jan 25
💰 Finance Global Economics Cryptocurrency Monetary Policy International Trade
  1. Eurodollars are dollars held and used outside the US, which allow businesses around the world to conduct transactions without relying solely on the US banking system. This system grew because companies wanted to avoid US regulations and sanctions.
  2. Stablecoins, like eurodollars, are dollar-linked assets that facilitate transactions, providing a bridge between cryptocurrency and traditional money. They promise to maintain a value equal to the US dollar, similar to how eurodollars work.
  3. The future of stablecoins may involve replacing eurodollars in global finance, but their stability and growth depend on stronger backing systems and regulatory support to avoid issues that have affected both eurodollars and cryptocurrencies.

‘I Don’t Think My Business Can Survive These Tariffs’

Common Sense with Bari Weiss • 635 implied HN points • 02 Feb 25
💼 Business Trade Tariffs Small business Economics International Trade
  1. Many small businesses in Canada are struggling due to high tariffs imposed by the U.S., especially under Trump's trade policies. This means they might face serious financial challenges unless these tariffs are lifted.
  2. Darrin Smith, who runs a successful woodworking tools company, is worried that the 25% tariffs will threaten the survival of his business. He relies heavily on sales to the U.S.
  3. The tariffs were created to address issues like illegal immigration and drug smuggling, but the actual impact on businesses could be quite damaging, raising concerns about the broader economy.
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Tariff Engineering, Explained

SatPost by Trung Phan • 84 implied HN points • 07 Feb 25
💼 Business Tariffs International Trade Market Competition E-commerce Product Design
  1. Tariff engineering is when companies change their products slightly to pay less in import taxes. This can involve using different materials or designs that fit into cheaper tariff categories.
  2. Some well-known brands, like Converse and Subaru, have used tariff engineering to give their products lower duty rates. This practice can lead to legal debates but is generally accepted as long as rules are followed.
  3. Recent changes in tariff rules, especially related to low-value imports, can affect companies like SHEIN and Temu significantly, potentially leveling the playing field for U.S. businesses and impacting the prices consumers pay.

Do Tariffs Reduce Trade Deficits?

In My Tribe • 288 implied HN points • 22 Jan 25
💰 Finance International Trade Macroeconomics Tariffs Economic Policy
  1. Understanding international economics is complicated and involves many factors. It's not just simple numbers, but a mix of many different elements.
  2. A country's trade surplus is linked to its ability to save more than it invests. Countries that save well will usually end up holding other countries' debt like U.S. Treasury bills.
  3. Imposing tariffs might not significantly reduce trade deficits. Instead, currency appreciation can offset any potential benefits from tariffs, so real change depends more on national savings rates.

Brazil's Lula travels to China and calls to end US dollar dominance

Geopolitical Economy Report • 657 implied HN points • 16 Apr 23
🌍 World Politics Geopolitics International relations Economic Cooperation International Trade Global Development
  1. Brazil's President Lula da Silva visited China to deepen strategic partnerships and challenge US dollar dominance by signing cooperation agreements, focusing on trading in local currencies.
  2. China is Brazil's largest trading partner, with significant trade surpluses, and both countries have seen substantial growth in bilateral trade over the years.
  3. Political coups in Brazil, backed by the US, led to economic downturns, but under Lula and Dilma, the country advanced, lifting millions out of poverty and shaping key economic relationships.

NY Times is wrong on dedollarization: Economist Michael Hudson debunks Paul Krugman's dollar defense

Geopolitical Economy Report • 518 implied HN points • 16 May 23
🌍 World Politics Geopolitics Currency International Trade Global Markets US Hegemony
  1. Economist Michael Hudson debunks Paul Krugman's arguments on de-dollarization, highlighting historical economic misconceptions by Krugman.
  2. Krugman dismisses the importance of controlling the world's reserve currency, arguing it's overrated, but fails to address the impact of capital flows on currency values.
  3. Krugman's defense of the US dollar relies on tautological reasoning, stating the dollar is powerful because it's widely used, without acknowledging geopolitical shifts away from the dollar.

BYD approach toward Global South market

TP’s Substack • 22 implied HN points • 21 Dec 24
💼 Business Automotive Market Trends International Trade Consumer behavior Product Development
  1. Cars in Global South countries tend to be smaller and more fuel-efficient compared to those in the United States. This is important for companies like BYD to consider when entering these markets.
  2. BYD's current models may be too large for many consumers in the Global South, where smaller vehicles are preferred. They need to develop smaller cars and hybrids to better fit local preferences.
  3. The charging infrastructure in these regions is lagging behind, meaning that practical and affordable vehicles are crucial. BYD should focus on making adaptations for local markets to increase sales.

Endgame #1

The Dollar Endgame • 359 implied HN points • 26 Aug 23
💰 Finance Economics Global Markets Currency International Trade Cryptocurrency
  1. Argentina is facing a severe economic crisis with massive currency devaluation and high inflation, but there is hope for stabilization with proposed governmental changes and monetary reforms.
  2. China's property market is experiencing significant challenges, with key real estate firms facing default, worker payment issues, and the country slipping into deflation, raising concerns for a possible global recession.
  3. The BRICS alliance, particularly China and Russia, is strategizing to lessen dollar dominance by expanding membership and discussing possible alternatives, like involving major oil exporters and establishing a new reserve currency, amidst complexities and challenges in implementing such changes.

Ukraine's Zelensky sends love letter to US corporations, promising 'big business' for Wall Street

Geopolitical Economy Report • 438 implied HN points • 25 Jan 23
🌍 World Politics Neoliberalism Foreign Relations Corporate Influence Economic Policy International Trade
  1. Ukrainian president Zelensky is actively seeking investment from US corporations like BlackRock, JP Morgan, and Goldman Sachs, encouraging them to do business in Ukraine.
  2. Zelensky's government has implemented aggressive anti-worker policies, limiting union rights and encouraging a pro-corporate environment.
  3. Western governments and corporations are planning aggressive neoliberal reforms for Ukraine, aiming to privatize and deregulate industries with the help of powerful entities like BlackRock.

De-dollarization Attack

Diane Francis • 559 implied HN points • 13 Apr 23
💰 Finance Currency Economics Global Markets Monetary Policy International Trade
  1. The US Dollar is seen as a stable and reliable currency globally, much more so than other national currencies and cryptocurrencies. This stability comes from a strong economy and the trust in its government.
  2. Russia's attempts to promote the use of the Chinese Yuan and create a new currency are unlikely to weaken the dominance of the US Dollar. In fact, they may end up increasing China's dependency on dollar reserves for stability.
  3. While there is some competition in global currencies, none are poised to replace the dollar until they are backed by strong, dynamic economies that have military power and stable governments.

Can Bitcoin Save The U.S. Dollar?

QTR’s Fringe Finance • 23 implied HN points • 01 Dec 24
💰 Finance Cryptocurrency Monetary Policy Economic Theory International Trade Government Policy
  1. Some politicians suggest creating a Bitcoin reserve for the US, thinking it could help the dollar's value and stability. They believe having Bitcoin might make the US economy stronger.
  2. Having reserve assets like Bitcoin is not as necessary for the US dollar, which is already powerful globally. The dollar doesn't need extra support from things like Bitcoin because it's already widely used.
  3. Adding Bitcoin to the US reserve wouldn’t really help the dollar; it might just serve to enrich some investors. The government should focus on what truly supports the economy, not on trendy assets.

China clarifies its beef import investigation

Beijing Channel • 6 implied HN points • 29 Dec 24
🌍 World Politics International Trade Economic Policy Agriculture Regulation Diplomacy
  1. China's Ministry of Commerce has started an investigation into beef imports due to a big increase in imported beef that is hurting local cattle farmers.
  2. The investigation was prompted by requests from multiple industry groups worried about the impact of rising imports on their livelihoods.
  3. China emphasizes that the investigation is not targeting specific countries and that normal trade will continue during the probe.

The US-China Chip War is Escalating

Apricitas Economics • 80 implied HN points • 17 Feb 24
🌍 World Politics US-China Relations International Trade Economic Sanctions Semiconductor industry
  1. Semiconductor chips are critical to global supply chains and geopolitical tensions, with the US intensifying efforts to boost domestic manufacturing while imposing sanctions on China.
  2. China is significantly increasing imports of semiconductor manufacturing equipment to fortify its chip industry, even amidst trade disputes and sanctions.
  3. Despite efforts to restrict China's access to advanced chips and equipment, there are challenges faced by the US in fully controlling the semiconductor trade and maintaining successful sanctions.

✅ African public relations agency recognised by The Financial Times

Wadds Inc. newsletter • 39 implied HN points • 04 May 23
💼 Business Public Relations Marketing Entrepreneurship International Trade Data Analytics
  1. BHM, an African public relations agency, was named one of Africa's Top 100 fastest-growing companies by The Financial Times. This is a big deal for a privately owned firm.
  2. The agency focuses on helping African businesses reach international markets and helping foreign companies understand Africa. This is important as businesses look for new opportunities.
  3. BHM values hard work and community involvement, with a strong team made up of people who have grown within the company. They even created World PR Day to highlight the importance of public relations.

No Foxy Business 🦊

Sector 6 | The Newsletter of AIM • 0 implied HN points • 14 Mar 23
💼 Business Supply Chain International Trade Regulatory Affairs Corporate ethics
  1. The term 'Foxconned' reflects how people might feel tricked by promises of jobs and progress that don't turn out as expected.
  2. In India, there are changes to labor laws allowing longer hours and shifts, making it easier for companies like Apple to operate there instead of in China.
  3. These changes are part of a larger strategy by the government to attract tech companies, but they raise concerns about workers' rights and job security.

The US Is Bankrupt From Top To Bottom - Only A Total Realignment of Its Economy Can Save It

Oz’s Newsletter • 0 implied HN points • 19 Dec 23
🌍 World Politics International Trade
  1. The US economy is facing a crisis from top to bottom due to its reliance on unsustainable financial practices.
  2. The US dollar losing its reserve currency status has led to massive economic repercussions.
  3. A total realignment of the US economy is crucial to create tangible value and move away from financial shenanigans.

Plus Post: Collins International Trading Corp's Orange+

Computer Ads from the Past • 0 implied HN points • 30 Oct 24
💼 Business Advertising Marketing Retail Technology International Trade
  1. There are multiple companies with the name Collins International Trading Corporation, each with different histories and focuses.
  2. One of these companies started in 1980 as a distribution arm for a Philippine electronics retailer.
  3. Another was formed from the purchase of the Collins Radio Company by Rockwell International in 1973.