US export controls on China did not lead to reshoring or friend-shoring: US Federal Reserve

A lot of us predicted this outcome. I did but I didn’t expect to see it unfold so fast. In my mind I thought it would take China 10 years, but it has taken them much much less. It turns out the “indispensable nation” is quite dispensable.

I think the core of the problem is that the US economic and political establishment “got high on their own supply”. They believed their own propaganda. They think very highly of themselves and very lowly of everyone else. One day, perhaps soon, they will realize that American Exceptionalism is a myth and no way to conduct international relations.