Tomorrow the presidents of the two biggest economies will meet in San Francisco for the #apac summit. China is not going through its best moment, with issues such as deflation, an aging population or real estate crisis to name a few items, while the US comes to the meeting after a 4.9% yoy gdp growth and an apparent control on inflation, but with a big deficit and national debt problem. The Chinese, in the past the biggest holders of U.S. debt, own now 40% less treasuries than 10 years ago, and on shoring after #covid is hurting its manufacturing engine. Chinese gdp has gone from 75% of the U.S. to 62%, as can be seen below. Chinese exports to the U.S. have declined 15% YTD, which hurts its economic growth, but using Chinese judo like mentality, it’s also 15% less money recycled into treasuries, which in turn hurts the U.S. economy. A very important meeting with long term repercussions to both economies.
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Chart source: WSJ
![](https://static.wixstatic.com/media/53b7bb_ed9bb8785eb2403ab8e1998840809411~mv2.png/v1/fill/w_49,h_65,al_c,q_85,usm_0.66_1.00_0.01,blur_2,enc_auto/53b7bb_ed9bb8785eb2403ab8e1998840809411~mv2.png)