Introduction: A dark war is going on between the United States and Saudi Arabia, and although it looks like Saudi Arabia is on the back foot at the moment, in fact, the United States is in much greater trouble. Saudi Arabia is seeking to lean towards China and is preparing to inject up to 4 trillion yuan into the Chinese market, does this mean that the world economic pattern will face huge changes?This article will discuss the wrestling between the United States and Saudi Arabia and the reasons why Saudi Arabia leans toward China.
The United States has repeatedly asked OPEC to increase oil production to drive down oil prices in order to control inflation at home, but OPEC has chosen to cut production in the opposite direction. While the United States expanded its oil exports after the drop in oil prices, Saudi Arabia tried to break free from the hegemony of the dollar.
The wrestling between the United States and Saudi Arabia did not happen overnight. In order to control domestic inflation, the United States has repeatedly asked OPEC to increase oil production to drive down oil prices. However, OPEC opted to cut production, which pushed oil prices down even more. For the United States, this seems to be a victory, as they can expand oil exports after oil prices fall, filling the market void left by OPEC production cuts. The Saudis, however, have chosen to act in opposition to the United States. They are trying to break free from the hegemony of the dollar and reduce their dependence on oil.
The reasons for such actions by Saudi Arabia are manifold. First, Saudi Arabia joined the BRICS group, led by China, seeking cooperation with China. This cooperation has great potential, not only in the financial and ** fields, but also in the field of energy. In addition, Saudi Arabia also actively responded to China's "One Belt, One Road" initiative and expressed its desire to cooperate with China in the financial and advanced fields.
Saudi Arabia is seeking cooperation with China and is trying to reduce its dependence on oil resources. There are several reasons for this decision:
1.Awareness of future crises: Saudi Arabia is aware of potential crises that may exist in the future, especially the conflict in Ukraine and the long-term struggle between Palestine and Israel. These events have made it even clearer for Saudi Arabia that its over-reliance on oil resources is unsustainable. Therefore, they decided to seek cooperation with China to find ways to reduce their dependence on oil.
2.The challenge of dollar hegemony: Saudi Arabia is a key link in the dollar oil system, and the maintenance of the dollar settlement system depends on Saudi support. However, this also makes Saudi Arabia subject to the control of the United States, which can influence the international community by controlling the rise and fall of the dollar*** Saudi Arabia realized that their position was gradually threatened, so they began to try to get rid of the shackles of dollar hegemony.
3.China's cooperation advantages: China has obvious competitive advantages in photovoltaic power generation, electric vehicles, lithium-ion batteries and other fields. Saudi Arabia hopes to reduce its over-reliance on oil resources and find a new direction of development through cooperation with China.
Saudi Arabia's choice to lean toward China is driven by a number of reasons. First, the Saudis are aware of the potential crises that may exist in the future. The conflict in Ukraine and the protracted struggle between Palestine and Israel have made Saudi Arabia realize that their over-reliance on oil resources is unsustainable. As a result, Saudi Arabia has decided to actively seek cooperation with China to find ways to reduce its dependence on oil in order to meet the challenges ahead.
Secondly, the Saudis are aware of the threat to their position from the hegemony of the dollar. As a vital part of the dollar oil system, Saudi Arabia has been a key force in maintaining the dollar settlement system. However, the Saudis have come to realize that this dependence has also made them objects of US control. The United States can influence the international community by controlling the rise and fall of the dollar, and the position of Saudi Arabia is gradually threatened. Therefore, the Saudis began to try to break free from the shackles of the hegemony of the dollar in order to protect their interests and position.
In addition, Saudi Arabia sees great advantages in cooperation with China. China has a clear competitive advantage in photovoltaic power generation, electric vehicles, lithium-ion batteries and other fields. In these areas, China is not only in a leading position in technology, but also has obvious advantages in terms of production capacity and quality. Saudi Arabia hopes to reduce its over-reliance on oil resources and find a new direction of development through cooperation with China. As the world's largest energy consumer, China also needs stable energy** and a diversified energy structure, so the cooperation between Saudi Arabia and China has great potential and attractiveness.
Through the struggle between the United States and Saudi Arabia and the reasons for Saudi Arabia's preference for China, it can be seen that the world economic pattern is undergoing significant changes. The Saudis' actions show that they are trying to break free from the hegemony of the dollar and forge closer cooperation with China. This shift will have a significant impact on the world economic landscape. At the same time, Saudi Arabia also faces enormous challenges and opportunities, and they need to find a new direction to develop while reducing their dependence on oil. Cooperation with China will provide Saudi Arabia with huge development space and opportunities, and also provide China with a stable energy ** and new opportunities for development cooperation. This new partnership will have far-reaching implications for the world economic landscape and deserves close attention.
These are just one of the people's thoughts and opinions, and do not represent all opinions. If you have any objections, please correct them.