After the G7, China is tit for tat, subverting the underlying logic of hegemony!

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Author: Rong ping source: official account: Rong Ping (id:rongping898) has been authorized to reprint

While the west is using the mechanism of NATO’s pacification and the group of seven to promote the blockade against China and Russia, the East is also carrying out its own layout. Recently, Russian Foreign Ministry spokesperson zaharova said that Iran and Argentina have formally applied to join the BRICs organization.

In fact, the strategic significance of this matter is great, but most netizens seem not to be interested, because they feel that the BRICs may not play an effective role.

In fact, it doesn’t matter whether the BRICs can play a role. What really matters is the impact of these countries on the world when they come together.

What impact?

Subvert the underlying logic of American control over the world!

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When it comes to the question of what the United States relies on to control the world, there are two mainstream answers: strong military strength or dollar currency hegemony anchored to oil. These two answers cannot be said to be incorrect, but they are not completely correct. The underlying logic of the United States’ control of the world is, to be honest, very old-fashioned, that is, simply doing business, which specifically refers to international trade.

In other words, the United States controls the world by controlling international trade!

There are three logic lines in it.

The first logical line is why we should do business: the essence of doing business is economic activities, and all economic activities are to solve needs. It is divided into two kinds, one is the demand of commodities in the production process, that is, commodity production factors; One is consumers’ demand for commodity functions.

In the age of underdeveloped science and technology, the demand for these two kinds of goods is very simple. The demand of consumers is nothing more than the problem of dressing, eating, traveling and housing. They eat the simplest rice or pasta, wear cloth and silk, walk carriage and horses, live in brick houses, straw houses and timber houses; The demand for commodity production factors is the natural resources that can be used in the first processing, such as wood, cloth, bricks and so on.

It is precisely because these needs are simple enough that the vast majority of commodity production factors and consumers’ needs for commodity functions can be met by doing business in a country.

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Production factors refer to various social resources needed for social production and operation activities, including labor, capital, information, land, data, as well as various raw materials and parts.

But after entering the industrial revolution, especially the third industrial revolution, the demand for commodity production factors has become unprecedented complex.

For example, the problem of travel used to be short-distance by walking, half-way by riding, long-distance by carriage. Its production factor demand is nothing more than saddle horseshoes and nails, plus the wood and cloth used to make carriages. The parts involved in the upstream and downstream of the whole supply chain are no more than one digit, and the supporting stations and wider roads.

At present, there are more than 10000 spare parts for the four major systems of engine, transmission, chassis and body, supported by refineries, gas stations, highway 4S stores and so on; The medium and long distance rely on trains, and the six systems and supporting facilities of public works engineering, traction power supply, train operation control, high-speed trains, operation scheduling and passenger transport service need more than 100000 parts and tens of thousands of labor positions; Long distance depends on aircraft. There are more than 7 million parts in the ten systems of flight control, avionics, environmental control, engine, fuel, landing gear, hydraulic pressure, complete machine, high lift, communication and navigation, and the optical pipeline is more than 200 kilometers long.

And consumers’ demand for commodity functions has also become more advanced!

In terms of food, it used to be enough to eat, but now beef, lamb chops and seafood come in whatever is superior; In terms of communication, letters and phones used to be smart phones, but now they are smart phones. If voice doesn’t work, video doesn’t work, then typing and chatting all day long; In terms of living, there used to be no air leakage and no rain leakage. Now, smart home, smart toilet and smart cabinet are piled with rolls.

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At this time, we will find that whether it is the demand of commodity production factors or the demand of consumers for commodity functions, it is far from being solved by doing business in their own countries, because more than 90% of the country’s resources and population are relatively limited and cannot bear the whole industrial chain. Not to mention natural endowment, Japan can only grow rice, and beef and mutton to improve food quality must be imported from America; Egypt is dry and short of water, and the arable area is small. Wheat to solve the problem of national food and clothing must be imported from Russia and Ukraine.

So we need to do transnational business: buy patented technology in the United States, chips in Taiwan, storage devices in South Korea, materials in Japan, parts in China, machine tools in Europe, assembly in Vietnam, and then produce the goods consumers need. This is the basic model of international trade and the necessary condition for maintaining a modern life.

From this, we can draw a very important conclusion——

If you want to live a modern life, you must do transnational business. And not doing transnational business or not being able to do transnational business will inevitably lead to social chaos. After all, people who have lived a modern social life cannot adapt to the large-scale regression of the quality of life.

The reason for the collapse of the Soviet Union and the loss of the socialist camp in the cold war lies in the fact that transnational businesses in the eemc can neither meet the needs of commodity production factors nor meet the needs of consumers for commodity functions. For example, the last internal straw that crushed the Soviet Union, grain!

The second logical line is what business to do: the main commodities traded in transnational businesses can be divided into two categories, bulk commodities and industrial products.

Bulk commodities are subdivided into three types: first, energy commodities, such as crude oil and natural gas; Second, basic raw materials, such as steel, coal, non-ferrous metals, all kinds of ores; Third, agricultural and sideline products, such as grain, bamboo, wood, livestock products, fruits.

Industrial products are divided into two types. One is final industrial products. The remarkable feature of this kind of products is that consumers or consumer companies can directly use them after purchase, such as cars, smartphones, and civil aircraft; Second, intermediate industrial products, namely components, need to be reproduced in factories before they can be sold to the consumer market, such as LCD, transmission shaft, semiconductor.

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According to the technical difficulty, parts and components can be divided into strong substitutability and weak substitutability. Most of the strong substitutability are components with low technical content, which can’t be bought in this country, but can also be bought in other countries; Weak substitutability is mostly high-tech components, and there are often only a few suppliers.

The above products constitute a closed cycle in the physical supply chain of transnational business.

The third logical line is what to do business with and how to do business: what to do business with refers to what currency to do business with. Needless to say, it is naturally dollars. In the past, without US dollars, it was basically irrelevant to international trade and modern social life.

How to do business refers to how to do business in US dollars. Swift is responsible for the information message of cross-border remittance, and chips is responsible for the settlement of cross-border US dollars. These two teams constitute the most powerful left hook and right hook in the world dominated by the United States. This content has been talked about many times, so I won’t say more here.

In short, based on the importance of the first logic line and the second logic line to all countries, the United States has made the third logic line its violent means of ruling the world.

There are two methods of this kind of violence. One is surgical precision strike, which only sanctions one or several enterprises to curb the development momentum of the country in a certain field. For example, the U.S. Department of Commerce issued an announcement on the sanctions against Huawei, saying that anyone who dares not to comply with my ban is not allowed to use swift and chips for cross-border settlement, which is equivalent to kicking them out of Global trade. Therefore, even if TSMC sincerely wants to continue to supply Huawei, it has to succumb to the obscenity of the United States!

The other is comprehensive strategic bombing, that is, excluding all cross-border settlement businesses of enterprises and companies in a country from swift and chips without distinction, and forbidding the use of US dollars. For details, please refer to the sanctions imposed by the United States and Europe on Russia and Iran.

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Swift and chips constitute a complete nuclear strike system in the field of cross-border payment and settlement systems in the United States

Of course, everyone knows that this system is unreasonable, and that it is a financial tool used by the United States for violent rule and exploitation, but they dare not say anything, let alone expose it.

Why?

The answer is not complicated: because no country or group of countries can solve the three elements required for international trade, namely, perfect commodity supply, international settlement currency and world-class cross-border settlement channels, while still having the will and strength to cope with the crazy outbreak of the United States and completely defeat it!

Now, with China, Russia, India, Brazil, Argentina, Iran and South Africa United to form a group of countries through the BRICs platform, all conditions are ripe to subvert the United States’ control of the world.

First of all, in terms of perfect commodity supply, if you carefully study the industrial structure of these seven countries, you can find that they fully meet all the commodity needs of countries for international trade.

Russia + Iran can meet the demand of all energy commodities with oil and gas resources as the core;

Russia + Brazil + Argentina + China + South Africa + India can meet the demand for basic raw materials with iron ore, coal and steel as the core;

Russia + Brazil + Argentina + South Africa + India can meet the needs of all agricultural and sideline products with grain as the core. As for final industrial supplies and intermediate industrial supplies, China alone can meet all needs. Moreover, Russia, Pakistan and Afghanistan have relatively high attainments in some industrial fields.

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The industrial structure of the BRICs countries covers all products traded in international trade

Secondly, as the most eye-catching RMB internationalization and cross-border settlement system as an alternative to de dollarization, China has the strength and willingness to promote it.

According to Reuters, India’s largest cement producer, chaoke cement, is importing a batch of Russian coal and using RMB for payment. Indian government officials said that this situation was rare in the past, but due to Western sanctions against Russia,

After that, it will be more and more frequent to settle accounts in RMB, and then chaoke and the Indian banking sector will be vilified by Indian netizens.

Be reasonable, super science is really bitter this time.

The essence of financial activities is based on credit, or stability. The ruble of Russia and the rupee of India do not meet this condition. The fluctuation is very serious. The two countries do not trust each other’s currencies. India uses 10billion rupees to buy $1billion worth of Russian weapons. Tomorrow, if your rupee depreciates by 10billion, you can only buy $200million. Isn’t Russia losing a lot?

Therefore, using a stable currency in cross-border trade can avoid the problem of interest damage caused by the instability of purchasing power to the greatest extent.

Among all non US dollar systems, the most stable exchange rate is the RMB. The euro is no better than the US dollar due to the impact of the energy crisis and inflation. The yen simply lies flat. On June 13, the exchange rate of the yen against the US dollar fell below 135, the lowest level since October 1998. Besides, China is the number one trade currency of more than 100 countries. It is convenient to store more RMB and do business with other countries.

India doesn’t deal with us very well, as you know, but from the fact that the Central Bank of India changed the rupee exchange rate from pegging to the US dollar to pegging to the RMB, and then Indian enterprises used RMB for settlement, it shows that Indian policy and business circles still very much recognize the strength of the RMB.

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Cement mixer of chaoke cement

In terms of willingness, there are two recent news worthy of high attention.

According to Xinhua News Agency on June 20, the people’s Bank of China issued the notice on supporting cross-border RMB settlement of new foreign trade formats.

A week later, the central bank signed an agreement with the bank for International Settlements to participate in the RMB liquidity arrangement. Other participants include the Central Bank of Indonesia, the Central Bank of Malaysia, the Hong Kong Monetary Authority, the monetary authority of Singapore and the Central Bank of Chile.

There are many things to interpret in these two news, but the fundamental purpose is to accelerate the internationalization of RMB and the construction of its cross-border settlement system.

Finally, the political significance of the BRICs group is benchmarked to the G7. As we all know, the group of seven countries in the West clearly represents the interests of developed countries, and the BRICs group should also clearly represent the interests of developing countries.

This is China’s strategy of struggle. We can’t limit the competition between China and the United States to the competition between countries, just as the U.S. strategy towards China will never fight alone.

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With will, ability and allies, what should we do next?

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