The rise of the world's factory, China's last battle!
Since China's rise to become a veritable factory of the world, the international economic landscape has undergone earth-shaking changes. The United States may not be able to exclude China from the international payment system, Wall Street may face capital migration, and the world may witness the birth of a new settlement system.
On March 27, 2021, Chinese State Councilor and Foreign Minister Wang Yi and Iranian Foreign Minister Mohammad Javad Zarif signed a document on 25 years of comprehensive cooperation between China and Iran in Tehran. Among them, there is a clause on the settlement method between China and Iran that stands out: Iran's oil and ** will be settled in yuan and digital yuan. In the era when the US dollar swept the world, the RMB broke out of the sky.
RMB counterattack: China-Iran agreement detonates US concerns.
Iran was kicked out of SWIFT as early as 2012 and banned from using the US dollar for international ** settlements. However, Iran's choice to settle with China in renminbi is a head-scratching move, but it is also a helpless solution. For China, this was almost unthinkable in the early days of the founding of the People's Republic of China, but with the rise of China, its strength as the world's largest factory has allowed the renminbi to compete with the dollar.
The United States "old man": more than 20 trillion U.S. debts plague the world.
Why do people always like to use the term "old man" to describe the United States?Because globally, the United States owes more than $20 trillion in debt. China's U.S. debt alone is as high as 1$188 trillion, enough to build several USS Ford aircraft carriers. However, despite this, the world is still willing to exchange real goods with the United States, because the US dollar, as an international currency, has an absolute hegemonic status.
* The collapse of the times: Oil was the key to maintaining the hegemony of the dollar.
After World War II, the United States attracted countries to import a large number of American goods by promoting the concept of **equal to the dollar, which deepened its dependence on the dollar. However, it is not endless, and when the US reserves are exhausted, this lie will eventually be revealed. The United States has turned its attention to the Middle East and maintained its hegemony by controlling oil. However, with the rise of new energy sources, the status of oil is gradually declining, and the position of the dollar hegemony is also in jeopardy.
The Oil Crisis and the Hegemony of the Dollar: The Rise and Fall of Liquid**.
In 1973, after the end of the Fourth Middle East War, Arab countries raised oil ** in order to protect their own resources, triggering the first oil crisis. Once again, the United States found an opportunity to woo the Saudi state and consolidate its hegemony by settling oil in dollars. However, the era of liquid ** is gradually declining in the face of the rise of new energy, and the glorious era of oil will also come to an end.
China: The Rise of the World's Factory and Global Dependence.
As the world's largest factory, China has formed a huge network of industrial systems. Chinese goods have penetrated into all aspects of foreigners' lives, and the global dependence on China cannot be ignored. If the dollar settlement is abandoned, will China become the next Iran and be kicked out of the international payment system dominated by the dollar?This raises concerns.
The global loss of China: not a lose-lose situation, but a heavy blow to one side.
Chinese goods have penetrated into all aspects of the lives of foreigners, cutting off China's best road, how many countries in the world will starve to death?Even if there is an offer to build a second world factory, the idea seems unrealistic, given China's boom in high-tech industries and the difficulty of other countries to replicate China's large labor force.
China's response: an alternative to the international payment system.
If China is kicked out of the international payment system, it could be hit hard, the import and export industry could be hit, and the number of unemployed people could increase. However, taking this opportunity, the RMB is likely to internationalize faster, and the international ** will usher in a new era. In fact, this is not the first time that China has used the yuan in international settlements, as early as a few years ago, Russia abandoned its dollar reserves and used the yuan with China for oil transactions.
China-Iran Cooperation: America's anxiety stems from geopolitics.
The Sino-Iranian cooperation agreement has sparked anxiety in the United States, not only in response to US sanctions, but also because of Iran's key role in the geopolitics of the Middle East. Iran is a key counterweight to other Middle Eastern countries, and the alliance between China and Iran could lead to other countries following suit and challenging US hegemony.
China's rise has sparked panic in the United States: its hegemony may be shaken.
China's rise has frightened the United States, especially in high-tech industries, where it has begun to catch up and overtake. From 1991, when China was unable to confront the U.S. military, to today's "China threat theory", China has made tremendous progress in just over 20 years. This has made the United States deeply jealous, and some people have begun to question why China was spared 20 years ago.
China's Opportunity: Leaving the United States or Leading a New International Economic Order.
If China is kicked out of the international payment system, it may lead to a temporary economic shock, but this is also an opportunity, an opportunity for the RMB to internationalize faster and usher in a new era for the international community. From barter** to the use of blockchain technology, business between countries can continue as usual, even without the US dollar.
Conclusion: The world may usher in a reshuffle of the international economic order.
The rise of China, the panic in the United States, and the geopolitical implications of Sino-Iranian cooperation all make the international economic order likely to face a reshuffle. Whether China succeeds in leaving the United States is not only related to China's future, but will also have a profound impact on the global economic landscape.
Title: China's rise from the United States ushers in a new chapter in the international economic order.
Recently, an article about China's departure from the hegemony of the dollar has attracted widespread attention. This article deeply analyzes the challenges and opportunities of China's adoption of RMB settlement in the international market, and at the same time analyzes the instability of the hegemony of the United States in the global economic system.
First of all, the article points out the rise of China as the world's factory and an important player in the world. With its huge production capacity and huge network of industrial systems, China is gradually playing a leading role in the world. This makes China an indispensable link in the global ** chain, and the dependence of other countries on Chinese goods cannot be avoided.
The article also provides an insightful analysis of the economic problems of the United States, revealing the huge debt facing the United States and the global dependence on the dollar. This has led to a rethinking of the durability of the dollar's hegemony and the sustainability of the U.S. economy. The rise of China as a global manufacturing powerhouse has raised concerns about the future of the U.S. economy.
Of particular interest is the Sino-Iranian cooperation agreement, which the article sees as an important step in China's secession from the United States. Iran has joined forces with China and opted to settle oil and ** in yuan, which is seen as a response to US sanctions. The article provides an in-depth analysis of Iran's key position in the geopolitics of the Middle East and the possible global effects of Sino-Iranian cooperation. This has made the United States anxious and feared that other countries would follow suit and challenge American hegemony in the international system.
As for the possibility of China's departure from the hegemony of the dollar, the article clearly argues that China may face an economic challenge, but also sees an opportunity. The article argues that even if China breaks away from the dollar system, it has the ability to deal with it, and maintain the smooth flow of international affairs by establishing barter** with other countries and adopting new technological means. This is also seen as an opportunity for the RMB to internationalize more quickly, which is expected to usher in a new chapter in the international economic order.
Taken together, this article provides an insightful analysis of China's rise in the international economy and the unstable position of the United States in the global economy. China-Iran cooperation is seen as a key step in China's departure from the United States, drawing international attention to possible changes in the global economic order. The challenges facing China are obvious, but the article highlights China's importance in the global economy and its ability to meet them. This has led to thinking about the future direction of the international economic order, and we may usher in a new era of multipolarity.
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