China’s 96% Q1 surge in PP exports mirrors wider export push as trade tensions build

By John Richardson

THE ABOVE CHART, from this 22 April blog post by Mathew Klein, fund manager and author, underlines the arguments I’ve been making.

“Only 37% of China’s national income is spent by Chinese households on goods and services. That level is lower than anywhere else in the world—except for a few small tax havens and commodity hyper-exporters when prices are high,” wrote Klein.

“For Chinese nonfinancial corporations, employee compensation is only worth about 44% of gross value added...