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Yogthos
Yogthos
@yogthos@social.marxist.network  ·  activity timestamp 7 days ago

Chinese economists published a study arguing that US-China trade is driven by a financialization-offshoring nexus. US multinationals offshore production to China to extract surplus value, then use profits for financial activities (shareholder payouts, tax avoidance) rather than domestic reinvestment.

This cycle makes reshoring US manufacturing nearly impossible, as financialization depends on continued offshoring.

https://www.aeaweb.org/conference/2026/program/1490

#usa #china #economics #tradewar

American Economic Association

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