Very interesting paper by Chinese economists on the role of multinational corporations in the US–China trade conflict: US-based multinational corporations (MNCs) depend on extracting surplus value from China via a "financialization–offshoring nexus", with 4 parts: 1. MNCs offshore production to China and extract a substantial share of value added. 2. China's export of outsourced goods from MNCs generates US service trade revenues through payments for US corporate intellectual property rights. 3. To minimize tax liabilities, US MNCs retain most offshore earnings abroad and invest in short-term financial assets, rather than repatriating capital. 4. Profits from final sales in the US market are primarily used to enrich shareholders (via dividends, stock buybacks, and acquisitions), rather than reinvest in domestic production. US financialization depends on offshoring (and extraction of surplus value from China), and "shareholder value imperatives reinforce the drive to offshore", making reshoring of US manufacturing very difficult, if not impossible. Link here: