Author: Andy Xie

The US’ strategy of containing China and its shift towards re-industrialization are impacting competitive industries in high-income economies. As China gains technological independence, these economies may face increased competition and higher raw material prices. This shift could push them towards middle-income status, affecting currencies like the yen, euro, won, and New Taiwan dollar. High-income economies like Germany, Japan, and South Korea, which excelled post-World War II, are now challenged by China’s rapid technological advancements and manufacturing sophistication. The US’ containment strategy further complicates matters by restricting China’s access to high-tech supply chains. Chinese competition, market restrictions, and reduced exports could…