Page 2 - David Dollar News Today

China was supposed to see a strong rebound from the pandemic. Instead it's facing deflation, massive debt, and a wobbling housing market.

China's falling prices are unlikely to have a significant impact here, given rising trade barriers and the composition of U.S. CPI.

China’s exports fell 14.5% in July. The country's trade data is a barometer for consumer spending around the world.

The sovereign-debt restructuring also bodes well for private holders of developing-market debt.

U.S. Treasury Secretary Janet Yellen recently visited China and met with senior Chinese economic and political officials. Mark Sobel, U.S. chairman of the Official Monetary and Financial Institutions Forum, reflects on her trip, and says U.S.-China dialogue on economic and other global issues is imperative. “I believe that if the world’s two largest economies … aren’t talking,” Sobel says, “whether they agree or not, that’s a very bad thing for themselves and the world.”

The top U.S. diplomat began a two-day trip amid accusations from Beijing that Washington alone is to blame for the historic rupture in relations.

U.S. imports rose in April, but manufacturers and retailers are seeking to diversify their supply chains as U.S.-China tensions pose a risk.

David Wessel joins host David Dollar to discuss what’s in the debt ceiling deal reached between President Biden and House Speaker Kevin McCarthy. Wessel explains the deal’s broad provisions, it’s impact on fiscal policy, and whether it resolves the long-term budget and debt issues.

US National Security Advisor Jake Sullivan's speech is another signal of the threat to global trade posed by the return of industrial policy to the North Atlantic.

The United States' focus on domestic industrial policy is unlikely to achieve its economic or national security objectives, writes David Dollar (Brookings Institution).