China's surplus is becoming a collective action problem for the rest of the industrial world. If America alone closes its market, Chinese production spills more heavily into Europe, Canada, Latin America, etc. Ip's proposal of a new Plaza Accord for the yuan is similar to Michael Pettis' call for a customs union. Both ideas speak to the same conclusion: coordinated refusal to continue absorbing China's surplus. Failure to do risks the entire Western effort toward reindustrializing, especially in the U.S. where the location of productive capacity is increasingly a national security question rather than a purely economic one. This is why America increasingly wants more unified policing from allies in its trade negotiations. The system has to change.