The useful part
Math doesn't care, either' 3 Investors thought they were buying pre-IPO OpenAI and SpaceX shares. Their cash went to strip clubs, Bloomingdale's, and shopping on Amazon, SEC alleges Economy China Asia China's export shock is pushing the global economy to a breaking point, and the U.S. may have to clean up the mess, former trade official says By Jason Ma Jason Ma Weekend Editor By Jason Ma Jason Ma Weekend Editor September 6, 2026, 7:04 PM ET U.S.
How it works
- "As Beijing debates whether to embrace the reforms necessary to avert disaster, other countries are likely to try to stem the flow of Chinese exports," he predicted.
- Don't expect China to come to the rescue, Froman wrote, pointing out Beijing has shown little interest in taking on the role the U.S.
- Evan Vucci-Pool/Getty Images Add Fortune on Google for similar content.
- See full bio Add Fortune on Google for similar content.
- President Donald Trump and Chinese President Xi Jinping tour Zhongnanhai Garden on May 15, 2026 in Beijing.
What to take from it
Froman said China can't fully commit to abandoning its export-led growth model, because it's an economic grand strategy and a political project. Imports of manufactured goods into China have grown by an average of just $15 billion annually over the last six years, essentially unchanged after accounting for inflation. Add us on Google Add us on Google While President Donald Trump's tariffs have caused much heartburn on Wall Street, China's cheap and overwhelming exports have also been rippling through the global economy.
Example or evidence
- Trade Representative and current president of the Council on Foreign Relations.
- That's after China posted a $1.2 trillion trade surplus in 2025—the largest in recorded history—growing three times faster than global goods trade.
- Most notably, Trump hiked tariffs on China last year and made it the centerpiece of his "Liberation Day" trade war.
- Even once-stalwart defenders of open markets, like the European Union, are racing to put up trade barriers against China.
Details worth keeping
Their cash went to strip clubs, Bloomingdale's, and shopping on Amazon, SEC alleges 1 Trump removes chairs for TSA agents, saying they 'must meet fitness for duty requirements' 2 Mike Rowe on America's great tradesperson shortage: 'I don't care what your politics are. Writing in Foreign Affairs last month, he warned "the world's ability to absorb Chinese overcapacity is approaching a breaking point." For example, the International Monetary Funds estimated that global GDP growth is running around 3.1% this year, while China's trade surplus expanded more than 20% in early 2026. Now there's widespread pushback against the flood of Chinese exports.
Related coverage
- Westernjournal: A war over Taiwan could unleash an economic shock greater than World War II by choking off one of the world's busiest trade routes and crippling the semiconductor industry, a […]
- Asiatimes: Beijing has called for communication and pragmatism after European Commission President Ursula von der Leyen warned of a second "China Shock" that's damaging key manufacturing industries in the bloc.
- Nytimes: Treasury Secretary Scott Bessent accused China for flooding the world with its cheap exports.
- Americanmanufacturing: As Xi Jinping prepares to visit Washington, D.C., for an official visit, his country's trade surpluses are breaking records.