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Musk likes to come to China because he knows that China may become the largest market for Tesla cars in the future.
Musk did say another thing at Tesla's earnings conference, he mentioned: "We do face competitive pressure from Chinese car companies, but this is not a bad thing." Competition drives us to innovate and improve our product quality and service levels. I believe that it is this competition that makes Tesla stronger. ”
Musk's words are not exaggerating. In recent years, Chinese car companies such as BYD and Geely have begun to shine on the international stage.
Musk's reference to China's real GDP being 2 to 3 times that of the United States is based on certain specific data and trends he observes. He mentions a few key arguments:
1. Power generation: As early as 2010, China's power generation has surpassed that of the United States, and now it is two or three times that of the United States. This is an important economic indicator because it directly reflects the level of industrial production and energy consumption. The rapid growth of China's electricity generation is indicative of the enormous scale of its industrialization and economic activity.
2. Automobile manufacturing: China's automobile manufacturing volume is also two to three times that of the United States. The auto manufacturing industry is an important manifestation of a country's industrial strength, and this data further supports Musk's view of China's economic aggregate.
3. Tesla's production: Tesla has 4 factories around the world, and in 2023, China's Shanghai factory alone will produce nearly half of the cars, which is more than the other factories combined. This illustrates China's advantages in terms of production capacity and efficiency.
Based on the above factors, Musk believes that according to the actual output of industry and agriculture, China's total economic output has not only surpassed that of the United States, but may also be two to three times that of the United States. "Real GDP" here may refer to GDP in purchasing power parity (PPP), a calculation that allows for a more accurate comparison of the size of economies and living standards of different countries, as it takes into account differences in price levels and the cost of living.
It should be noted that while Musk's views are supported by some data, the calculation and comparison of real GDP is a complex economic analysis process that involves multiple economic indicators and adjustment factors, so Musk's statement should be seen more as an opinion or estimate than as an exact statistic.
Why is the U.S. GDP the largest in the world?
There are several reasons why the U.S. GDP is the largest in the world:
First of all, the United States has strong economic power and scientific and technological strength, which is the basis for its GDP to maintain its leading position. The United States is one of the largest economies in the world, with a sizable share of gross domestic product (GDP) in the global total. At the same time, the United States has always been a leader in the field of science and technology, with many world-renowned technology companies and innovative achievements, which also provides strong support for its economic growth.
Second, the United States has advanced productive forces and production relations, a relatively perfect market economic system, and a high efficiency in resource allocation, which enables the United States to give full play to its economic potential. In addition, the United States also pays attention to education and personnel training, providing a steady stream of talent support for its economic development.
Third, the United States has a wide range of interests and investments around the world, with its multinational corporations and businesses all over the world, which also provides an important contribution to its GDP growth.
Finally, the U.S. dollar, as the global reserve currency, also facilitates U.S. economic growth and GDP growth. The dominance of the US dollar has given the US an important position in the global** and financial system, thus further cementing its GDP leadership.
Is the dollar on its way to decline?
As everyone knows, although Musk is a well-known entrepreneur in the United States, he has previously said that "the dollar is in decline".
Why does Musk say that the dollar is in decline? Chun Gongzi believes that there are mainly the following points that can be referred to:
1. The foreign policy and economic decisions of the United States have caused damage to global interests. For example, the United States has dragged EU countries to sanction Russia on energy, and then it itself peddled ** energy to European countries, which Musk described as "cutting leeks", which may make other allies of the United States less trusting it. This mistrust could lead to a challenge to the dollar's position, as the global** and financial systems require mutual trust and cooperation between countries to function stably.
2. Musk pointed out that American capitalists prefer to invest in the financial field to make quick money and make a lot of money in arms, rather than spending too much time on the slow real industry. This trend could lead to the "hollowing out" of U.S. industry, making it impossible for the U.S. to achieve "internal circulation" on its own sufficiency. If the economic growth of the United States is overly dependent on a few industries, such as finance and arms, then the stability and sustainability of its economy may be threatened, affecting the position of the dollar.
3. For a long time, the US dollar has dominated the global financial system. However, some countries may wish to challenge this hegemony and build a more diversified international monetary system. Investing in national or other national currencies can reduce dependence on the US dollar, thereby increasing the autonomy of monetary policy.
It is worth mentioning that the People's Bank of China has continuously increased its reserves, which is indeed a phenomenon worth paying attention to. **Often seen as a safe-haven asset, it is also an important part of a country's foreign exchange reserves. The PBOC has increased its reserves** for 15 consecutive months, accumulating a total of 9.55 million ounces, a trend that may indicate that China is seeking a more diversified and stable structure of foreign exchange reserves to reduce its reliance on a single currency such as the US dollar.