China and the United States have collapsed again!Yellen s pressure failed, China reduced its holding

Mondo Finance Updated on 2024-01-30

Relations between China and the United States have been tense since Trump launched the war and the war of technology blockade. Recently, U.S. Treasury Secretary Janet Yellen once again referred to China's economic policy and called on China to shift its economic policy. However, China has taken a firm stance on this and has made it clear that it will not compromise by selling US bonds for seven consecutive months. In the face of China's response, the United States not only did not give up, but also threatened China with the fate of Chinese companies. This tension has aroused people's attention and reflection on Sino-US relations.

In her speech, U.S. Treasury Secretary Janet Yellen called on China to shift its economic policies, including reducing the influence of state-owned enterprises and limiting the impact of institutions on investment. However, a spokesperson for China did not respond directly to her remarks, but stressed the importance of China-US economic and trade relations. This shows that the Chinese side does not want to discuss this topic with the US side.

China responded to Yellen's pressure by selling US bonds for seven consecutive months. This means that China will not only not follow the instructions of the United States, but will also firmly pursue its own economic policy. This move further demonstrates China's resolute stance toward the United States. Tensions between China and the United States have become more pronounced, and economic and trade relations have become a key issue in the relations between the two countries.

China-US economic and trade relations have always been regarded as the "ballast stone" of China-US relations. Since Trump launched the war, China and the United States have been greatly affected. When Biden came to power, he tried to extend the policy of "decoupling and breaking the chain" with China to Europe, but this was unsuccessful. In fact, the United States and Western countries are still inseparable from their dependence on China. This forced Biden to recognize the reality and temporarily abandon his tough stance on China.

After Biden conceded his fate, China began to fight back. As the Fed's interest rate hikes hit global money markets, China will need to sell US bonds in order to flatten its exchange rate. However, the United States still uses the hegemony of the dollar to amass wealth around the world. Especially after the outbreak of the Russian-Ukrainian conflict, Russia took the lead in opening the era of "de-dollarization", and anti-American hegemonic countries around the world have gathered. This has led to a wave of "de-dollarization" on a global scale.

Yellen's proposal of "state-owned enterprises retreating and foreign enterprises entering" is fundamentally untenable. Such a policy would put the fate of China's economy in the hands of foreign companies, which would determine the pace and success of China's economy. This approach will not only bring economic risks to China, but may also lead to *** problems.

The frenzied hype of the "theory of China's economic collapse" and the withdrawal of foreign capital by the United States and Western countries is precisely based on their calculations. However, according to the October report on international capital flows, China has been in charge of US debt for seven consecutive months, which is China's response to Yellen's remarks. The Chinese side resolutely refuses to obey US orders and will pursue its economic policy in a step-by-step manner without giving any face.

The United States sees China's position and understands that this issue is non-negotiable. As a result, a new round of open and secret battles began again. After China's U.S. bonds, the U.S. Department of Commerce announced that it would add 13 Chinese companies to the "unverified list". Even low-tech products, as long as they are produced by these companies, need to indicate their end-use, user and destination country, and agree to be verified by the United States. This is a disguised threat from the US side to China, they allow China to decouple, but do not allow China to "get rid of" the dollar and do not obey the wishes of the United States.

Tensions in U.S.-China relations have once again highlighted the economic and political rivalry between the two countries. Both China and the United States are working hard to defend their interests and policy positions. However, both sides should understand that competition and friction alone cannot solve the problem, and that dialogue and cooperation are the only way to solve the problem.

With the development and changes of the global economy, the cooperation between China and the United States in the economic and advanced fields is not only of great significance to the development of the two countries, but also plays a vital role in the stability and prosperity of the global economy. Therefore, the two sides should adhere to the principles of mutual respect, equality and mutual benefit, and solve problems through dialogue and cooperation.

In addition, politicians and scholars should also conduct in-depth research and reflection on China-US relations, and strive to put forward constructive solutions to push China-US relations onto a more stable and healthy track. At the same time, the international community also has the responsibility to view the dispute between China and the United States objectively and fairly, and to provide constructive assistance and support for resolving the problem. Only by working together can China and the United States jointly address global challenges and promote the prosperity and development of the world economy.

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