The financial war waged by the United States against China has been going on for years, and both sides are engaged in bitter fighting. The U.S. uses the dollar's status as a global currency to contain the wealth and economic development of other countries by raising and lowering interest rates. By raising interest rates in the United States, it attracts funds from other countries to flow into American banks, resulting in a tightening of liquidity in other countries and even bankruptcy of other countries. In this way, the United States achieved control over the assets of other countries and achieved the goal of harvesting wealth.
In the financial war, the United States implements its strategy mainly by controlling interest rates and capital liquidity. For example, the U.S. can lend money to companies in a country at low interest rates and then raise the interest rate when the repayment deadline comes, causing the country's currency to depreciate and its liabilities to increase. In this way, the U.S. can access the high-quality assets of the country's companies, further enhancing the value of the U.S. dollar. That's why the U.S. wants China to open up its financial sector further, and they want to buy high-quality Chinese assets to support the value of the dollar.
The dollar has been looking for valuable support since it became a world currency. In the 40s of the last century, the dollar was pegged to **, but due to the lack of ** reserves, the United States chose to peg to oil in the 70s. However, with the rise of new energy vehicles and the increase in money printing in the United States, the value support of oil is no longer obvious. Therefore, the most valuable thing that the United States is looking for now is the means of production, especially some companies with stable economic growth and strong strength.
The United States printed a large number of dollars through the money printing press, which led to the problem of inflation and the depreciation of the dollar. To solve this problem, they need to look for something of real value to support the value of the dollar. For the United States, the purchase of the most valuable means of production has become an important way for them to solve inflation. By buying these high-quality assets, the U.S. has managed to find value support for the multi-printed dollar.
As the world's largest industrial country and the second largest economy, China has abundant means of production, including a series of companies such as State Grid, China Mobile, and Huawei. These are the best value supports in the dollar tidal wave. However, due to China's foreign exchange controls and the closure of the financial sector, the United States is unable to directly buy China's high-quality assets. As a result, the United States has waged a financial war in an attempt to acquire these assets by forcing China to open up its financial sector.
The only way China can resist the tide of the dollar at the moment is to increase its foreign exchange reserves or impose foreign exchange controls. China has large dollar foreign exchange reserves, so it is unlikely to be depleted by dollar fluctuations. China can also preserve its foreign exchange reserves by strengthening industrial upgrading, especially in high-tech fields such as chips and new energy, and reducing its dependence on imported chips and oil.
In addition, China is encouraging companies to internationalize and earn more foreign exchange reserves. For example, Chinese companies such as DJI can expand through international markets, attract more foreign investment and earn foreign exchange. With sufficient foreign exchange reserves, China will not only be able to withstand the onslaught of the dollar tide, but also profit from it.
China's current strategy is to carry out industrial upgrading, improve its technological level and independent innovation capabilities, and further promote the reform and transformation of its economic structure. China encourages the development of high-tech industries and improves its core competitiveness. In this way, China can produce and sell its own products, reduce its dependence on imports, reduce its demand for the dollar, and protect its foreign exchange reserves.
In addition, China is actively promoting the internationalization of the renminbi. When the renminbi becomes an international currency, it will reduce its dependence on the US dollar, and China will be able to carry out its own financial policy and will no longer be subject to the interest rate policy of the United States.
China's strategy in the financial war is to be patient and try to avoid short-term conflicts. China believes that over time, the plight of the United States will become more and more acute, and they will have to look for cooperation with China and other countries. China believes that it can win the financial war by sticking to its own development strategy and actively looking for partners.