But the price of exporting trade is importing inflation and deflation. You've given up control and it takes on its own dynamic.

China built factories to supply the entire world with goods. They can't just run them at half-capacity because everyone is now old, broke, and done shopping.

They have to run at full-capacity and some will go bankrupt and close, and that will lower production mid-term. 

 What happened is that everyone was stuck at home during Covid (even where there were no lockdowns, people still stayed home), and they were bored and did some shopping, instead of going out or taking vacation.

But they already have their new e-car, laptop, and washing machine. And interest rates are still too high for most home buyers and renters are frozen in place, so no new kitchens or Ikea furniture.

We only pulled demand forward; there was no net-increase. The factories ramped up and now demand is back down, so deflation and recession incoming. 

 This is also why freight companies are restructuring or going bankrupt. Nothing to transport, but they bought new trucks. 

 China's subsidized economy steals wealth from households to fund loss generating business. They are the only ones loosing out here.

These tarrifs steal wealth from US / European households to fund fiscal dominance. Just let us have our cheap goods.  

 Based on what I see on the ground, if this is what losing out looks like I think I'll go with that instead of winning.  

 Where are you getting domestic consumption numbers from? Anecdotally, everything in China is pretty awesome right now, everyone is buying heaps of stuff.  

 Take into account that the Chinese population is shrinking and aging, and old people consume less.
And dead people consume the least. 

 Consumption still seems to be increasing though. 

The population is shrinking but it's not disappearing and it's also becoming much richer. 

You could probably wipe out 90% of the Chinese population and still consume more than the rest of the world combined.
 

 The question isn't whether they are consuming something. It's whether they're consuming as much of the somethings being exported. 

 Wealthier people tend to consume more services and fewer goods. 

 The remainder seems to be buying gold, since real estate is a mess. 

 Way more seem to be buying shitcoins than buying gold. 

Side note: real estate is intentionally being demonetized.  

 Especially real estate in Japan and the US.