Trade Deficits Paying for China Military Buildup

One little detail largely escaped media notice when Chinese president Xi Jinping met with North Korean dictator Kim Jong-un on May 8. The visit coincided with China's launch of its first indigenous aircraft carrier in the town where the two met, perhaps sending a message to friend and foes of both China and North Korea:

The pair reportedly met in Dalian, where Xi will attend a ceremony launching the country's first domestically-built aircraft carrier.

To North Korea, the message was, don't worry, because China has your back. To the U.S., the message was, you'd better start worrying about more than the price of soybeans.

China has global ambitions, and those ambitions, like that new carrier, are being paid for in large part by the vast transfer of wealth via our huge trade deficits with Beijing.

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