U.S.-China trade reallocation and supply chain shifts

New data on state-level China trade exposure reveals significant reallocation: New Mexico's share at 18%, California dropping from 20.5% to 12.8% due to tariff changes. This provides granular, quantitative evidence of shifting supply chains and regional vulnerability to tariff shocks. Aligns with ongoing trade tensions and fiscal credibility erosion narrative. China's 'just enough' policy stance—refusing to panic despite slowing growth, favoring quality over stimulus—challenges the old China reflation trade and adds a macro dimension to the trade reallocation story.