The United States has enjoyed dollar hegemony for nearly 50 years since Saudi Arabia agreed to use the dollar for settlement of oil exports. However, the recent start of a secret war between the United States and Saudi Arabia has led to tensions between the two countries. Although Saudi Arabia seems to be on the back foot at the moment, the United States faces more trouble because it could lead to the collapse of the dollar's oil system. The outcome of this dark war will have a significant impact on the world economic landscape.
The United States and Saudi Arabia used to be allies, but now their relations are starting to become strained. In order to control inflation, the United States has repeatedly asked OPEC to increase oil production to lower oil prices, but OPEC has chosen to cut production. However, oil prices did not go as the United States would like**, but rather fell. This led the United States to decide to fill the gap in the market by increasing oil exports. While the United States has achieved some victories in this regard, Saudi Arabia is also actively looking for ways to break free from the shackles of dollar hegemony on the other hand. Saudi Arabia has joined the BRICS organization led by China and fully cooperates with China's "One Belt, One Road" initiative, hoping to find cooperation opportunities in the fields of finance and **. Saudi Arabia also refuted the U.S. debt threat theory and expressed support for China. This trend means that Saudi Arabia is moving closer to China, and the oil settlement system on which the dollar depends is at risk of collapsing.
As a key link in the economic system of the Middle East, Saudi Arabia's actions will have a profound impact on the world economic landscape. Saudi Arabia is gradually moving away from dollar hegemony and choosing to cooperate with China. This move has attracted a lot of attention in the financial and ** fields. Saudi Arabia has signed a currency swap agreement with China of up to 500 billion yuan, and plans to set up a branch in China to find more investment opportunities. In addition, Saudi Arabia also intends to invest up to 4 trillion yuan in the Chinese market. This means that the world economic map is undergoing significant changes.
Cooperation between Saudi Arabia and China is deepening, especially in areas such as photovoltaics, electric vehicles and lithium-ion batteries, where China already has a clear competitive advantage. Saudi Arabia hopes to reduce its over-reliance on oil resources through cooperation with China. Currently, Saudi Arabia is planning to gradually reduce its dependence on oil and seek other energy alternatives. As the world's largest new energy market, China is undoubtedly Saudi Arabia's best partner. Saudi Arabia's membership in the BRICS and its support for China's Belt and Road Initiative (BRI) reflect the importance that Saudi Arabia attaches to China and the Asian market. Saudi Arabia's move will bring new opportunities and challenges to the world economy, which may lead to a reshuffle of the global economic map.
Saudi Arabia has chosen to cooperate with China and is trying to break free from the hegemony of the dollar for a number of reasons. On the one hand, by joining the Chinese-led BRICS, Saudi Arabia hopes to expand and diversify its economic partners and reduce its dependence on the United States. On the other hand, Saudi Arabia recognizes the instability caused by the long-standing Palestinian-Israeli conflict, which makes it clearly aware of the potential crisis it faces. The Saudis used to make great fortunes with petrodollars, but now it is becoming increasingly clear that this dependence has become a problem for them. Especially as the United States becomes a major oil exporter, Saudi Arabia's position will gradually be undercuted. Therefore, Saudi Arabia hopes to reduce its over-dependence on oil resources, find alternative energy sources, and remain competitive in the global energy market through cooperation with China.
Saudi Arabia is also optimistic about China's development prospects. As the world's second largest economy, China has great potential in scientific and technological innovation, infrastructure construction and environmental protection. Saudi Arabia hopes to diversify and sustain its economy through cooperation with China and with the help of China's technology and resources. Saudi Arabia recognises that China has already achieved clear advantages in areas such as photovoltaic power generation, electric vehicles, and lithium-ion batteries, which are the focus of future energy development. Therefore, Saudi Arabia hopes to cooperate with China to jointly develop new energy technologies and create a sustainable economic model.
Saudi Arabia's actions and cooperation with China mark a major shift in the global economic landscape. Saudi Arabia is trying to get rid of the hegemony of the dollar, reduce its excessive dependence on oil resources, and actively cooperate with China. This move will have a profound impact on the world economic landscape. Saudi Arabia joins the Chinese-led BRICS and supports China's Belt and Road Initiative, which aims to seek more opportunities for economic cooperation. In addition, Saudi Arabia also plans to invest a large amount of money in the Chinese market to promote cooperation between the two sides in the field of ** and finance. Saudi Arabia's actions and China's cooperation will bring new opportunities and challenges to the world economy. Against this backdrop, all countries should respond positively and seek opportunities for cooperation to promote the stability and sustainable development of the global economy.