The US-China trade balance shows a structural $600B+ annual wealth transfer from the US to China through trade, consistent since 1990. This is the financial mechanism of the power transition: trade deficits mean the US is consuming more than it produces, financing the gap by selling financial assets (debt) to surplus countries (including China). China recycles trade surpluses into US Treasuries, making it a major holder of US debt — which creates mutual leverage: China can threaten to sell Treasuries; US can threaten to default on Chinese-held debt.