China's 'Dumping Tsunami' Risks Global Economic Instability, US Think Tank Warns

A stark warning has emerged from a prominent U.S. think tank regarding China's export strategy, cautioning that a "dumping tsunami" of low-priced goods could destabilize the global economy. The analysis, published in Foreign Affairs magazine, highlights the unprecedented scale of China's trade surplus.

According to the report, China's persistent use of substantial subsidies and aggressive low-cost export tactics has created the largest trade surplus in history. Projections indicate this surplus could approach a staggering $1.2 trillion by the year 2025. This economic model, while beneficial for China in the short term, raises concerns about fair competition and global market stability.

The core of the concern lies in the global market's diminishing capacity to absorb China's ever-increasing excess production. The think tank suggests this absorption limit is rapidly approaching, potentially triggering a significant economic downturn that could drag down economies worldwide. The situation poses a critical challenge for international trade relations and economic policy.