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A typical illustration can be drawn from the recent trends seen in the United States. For example, in 2021, despite running a trade deficit, the US attracted a similar amount in foreign investments, effectively mirroring its economic posture.
A Shift in Trends: China’s Trade Surplus
However, the narrative shifted notably in 2022 when China's trade surplus with the United States burgeoned. Reportedly, China’s surplus hit approximately a billion dollars a day, leading to a scenario where instead of reinvesting in US Treasury bonds or other assets, China began liquidating these bonds, significantly altering the flow of capital.