Keep pulling the thread on Michael Pettis.
China helped broker the diplomatic detente between Saudi Arabia and Iran approximately six months prior to the October 2023 Hamas attack on Israel.
The United States has redeployed an aircraft carrier battle group to the coast of Israel in response to the conflict with Hamas.
According to the Boston University Global Development Policy Center, total Chinese development finance to the entire African continent was $922 million in 2022.
From the 1980s to the early 2000s, China's development model reduced the household income share of GDP from approximately 70% down to 50%.
Michael Pettis believes that Venezuela's debt restructuring in 2015-2016 was a key event that made China aware of the significant risks associated with its lending to developing countries.
China has consistently shown no interest in outright debt cancellation for its loans to developing countries, preferring restructuring or deferrals.
Michael Pettis asserts there is almost zero chance of the Chinese RMB replacing the U.S. dollar as the dominant global reserve currency.
The international competitiveness of China's manufacturing sector is primarily due to a system of direct and indirect subsidies funded by transfers from the country's household sector.
Michael Pettis argues that large-scale manufacturing will not move out of China in the near term because the explicit and implicit subsidies manufacturers receive there are too substantial.
China's weak domestic demand, a consequence of its manufacturing-focused economic model, has forced over-investment in property and infrastructure, resulting in what may be the fastest growth in debt in history.
China maintains the strongest relationship with Iran compared to any other major global power.
China could be diplomatically rewarded if it is perceived as successfully encouraging Iran to restrain its proxies, Hamas and Hezbollah, in the conflict with Israel.