Original: Zhanhao source official account: Zhanhao wechat id:zhanhao668
Where will China US relations go? In fact, we can see from the news media every day that the United States has never stopped smearing and suppressing China. However, at the same time, we also see that the United States is trying every means to get close to China. For example, after the G20 foreign ministers’ meeting on July 9, the foreign ministers of China and the United States met in Bali, Indonesia, for more than five hours. They talked in depth and began to talk about a lot of substance.
In response to the “guardrail” of China US relations that the United States has been proposing to China in the past year, China has clearly told the United States that the three Sino US joint communiques are the most reliable “protection” of the two countries. China has also thrown out “four lists” to the United States, which are: a list of policies and words and deeds that require the United States to correct mistakes in China, a list of key cases of concern to China, a list of China related bills of major concern to China, and a list of cooperation in eight areas between China and the United States. In the past month or so, at the request of the United States, China and the United States have conducted five interactions in the diplomatic, military and economic fields, which was very rare in the past. From the attitude of meeting with China and the United States, it is obvious that the United States has a desire for China.
On the one hand, the United States is afraid of China’s rejuvenation and tries every means to contain and combat it. On the other hand, it has a very clear demand for China, especially recently. The appeal of the United States to China is to make China make concessions to the United States. The long-term concessions are geopolitical and military, such as the so-called security “fence”; The short-term concessions are in the hope that China will give more benefits to the United States economically.
Yesterday, the reason for this strong demand in the United States finally revealed in the short term – U.S. inflation hit a 41 year high. According to the data released by the U.S. Department of labor on the 13th, the U.S. consumer price index (CPI) rose 1.3% month on month in June this year, up 9.1% year-on-year, much higher than market expectations. The year-on-year increase was the largest since November 1981.
This problem is serious, because the United States announced a 75 basis point interest rate hike in June. With such a drastic interest rate hike, American inflation in June not only did not show any downward trend, but increased by 1.3% month on month and 9.1% year-on-year. What if there is no interest rate hike? What will happen to inflation in the United States? Unimaginable!
For the United States, it is facing a real huge problem, even a dilemma. If the Federal Reserve does not raise interest rates, inflation will soar. In fact, the current inflation rate of 9.1% is still the data after the United States adjusted the weight of commodities. If the United States had not lowered the weight of some commodities, including oil, the inflation rate of the United States would have exceeded 10%; If the Federal Reserve does not take such drastic interest rate hikes, the inflation rate in the United States will be higher.
Any economy is afraid of high inflation, because high inflation means a sharp devaluation of the currency, which will not only cause the disorder of the economic cycle, but also cause social unrest, even if the economy is developed, such as the United States is no exception, so when the inflation rate is high, the U.S. government is very anxious.
Many people may lack understanding of CPI data. We only need to look at the data of China in the past few years to see the leopard. Since 1997, the inflation rate in China has exceeded 5% only in 2008 and 2011, and generally between 1% and 3% in other years. However, the inflation rate in the United States was as high as 8% in 2021, and China was less than 1% in the same period. In 2022, the inflation rate in the United States will be even higher, rising from 7.5% in January to 9.1% in June. The inflation rate in 2022 is likely to exceed 8%. In this state, economic development and social stability will face great challenges.
At the same time, the U.S. GDP in the first quarter was negative month on month growth, and the situation in the second quarter was not optimistic. If it was negative growth for two consecutive quarters, the U.S. economic recession would be inevitable. At the same time, we should see that the Federal Reserve will have to raise interest rates sharply in July, which is likely to be 75 basis points. Such interest rate hikes will inevitably face great difficulties in economic development and the global economy. This is the reality.
Therefore, judging from the current situation, it is almost inevitable that the U.S. economy will fall into recession, because if the CPI of the United States is to fall, it must raise interest rates quickly and sharply, and the pressure of rapid and substantial interest rate hikes on the U.S. and even the global economy is obvious. You may have noticed that Sri Lanka has gone bankrupt, Algeria and Uzbekistan are also in danger, and even India is a little unable to support the trade. Trade should be settled in its own currency… In the past, the US interest rate hike was to create a crisis in other countries. Now the US interest rate hike not only created a crisis in other countries, but also created a crisis in itself. We have to say that the times have changed.
The biggest problem for the U.S. economy now is that it has no expectations for the future. In the United States, you can’t find a new economic growth point. In the past, the United States dominated the field of science and technology. Now the United States has to impose sanctions on China to barely maintain a little advantage in the chip field; In the past, the United States was dominant in the economic field. Now the United States can defeat it in the trade war; In the past, the United States dominated the military field, and now the United States has begun to be surpassed by China in many military science and technology fields. Its technological advantages are not many, but only the quantitative and scale advantages brought by time… Therefore, the biggest problem of the United States is that it wants to maintain hegemony, but the era of hegemony has passed, and the excess economic benefits based on hegemony no longer exist, but the United States is still maintaining this mirage, And continue to overdraw their own future and the strength of allies to increase investment to maintain the illusion.
In this context, the more the United States tosses, the more uncomfortable it is. Therefore, we can see that the inflation rate in the United States was as high as 9.1% in June, and China’s CPI in June was only 2.5%. China’s economic development is also facing difficulties, but compared with the United States, there is still a lot of room for improvement, but the United States has almost no room for improvement. Why did the United States interact with China five times a month? The root cause is this. After a long time, the United States at least has to turn to China for help in the immediate difficulties, otherwise the problem cannot be alleviated. The Biden administration is likely to lose the house and Senate next, not only the lame president, but also the president with disabled legs. It is against this background that Biden has to show a low attitude towards China.
It is also against this background that China confidently submitted four lists to the United States. Don’t you agree? Let’s spend it slowly! If you can’t stand it and want to compromise, let’s talk about the things on these four lists! In short, now China has tricks against the United States. It makes me feel bad if you punish me, and it makes you feel bad if I don’t cooperate with you. However, the problem is that everyone knows that China will make breakthroughs in the chip field in three to five years, and there will be qualitative changes in ten to eight years. Facing the booming China, how about the United States? In three to five years, the GDP was surpassed by China, and in ten to eight years, China failed completely. This is what the United States can foresee.
Why is the United States now in serious strategic anxiety? This is the root cause!
Moreover, if you pay attention to a detail, you will find that American leaders are full of arrogance when meeting their little brother, but they look a little embarrassed and less confident when meeting Chinese leaders. Especially when Biden shook hands with South Korean President Yin Xiyue recently, he didn’t even look at him during the whole process.
All kinds of signs show that the United States must make another round of economic compromise with China, otherwise the U.S. economy cannot withstand it. However, the Biden administration of the United States had to compromise with China after taking office for more than a year, which shows that the full confrontation between the United States and China has not done much to China, and it is also somewhat unbearable, which has proved that the strength between China and the United States is equal.
In fact, the advantages of the United States over China are still a few traditional advantages, while the advantages of China over the United States are solid real economic advantages. Taking foreign trade as an example, according to customs statistics, in the first half of the year, the total import and export value of China’s goods trade was 19.8 trillion yuan, an increase of 9.4% year-on-year. Among them, the export was 11.14 trillion yuan, an increase of 13.2%; Imports reached 8.66 trillion yuan, an increase of 4.8%. Among them, the growth rate of foreign trade rose significantly in May and June. In May, China’s foreign trade import and export increased by 9.5% year-on-year, 9.4 percentage points faster than that in April, and the growth rate in June further increased to 14.3%, returning to the double-digit growth rate. In April, affected by the epidemic, the growth rate of China’s foreign trade once fell to 0.1%, but it returned to a large growth after a slight easing.
Why do we still increase significantly when the global economy is sluggish and trade among countries is shrinking? The most fundamental reason is that the epidemic situation in our country is well controlled. Instead of weakening, productivity has increased. Other countries are different. Although the “lying flat” has been liberalized, it is difficult to work normally under the epidemic, and productivity has been greatly weakened. Therefore, China’s foreign trade has emerged as one of the world’s major economies.
Maybe many people have no idea about China’s foreign trade revenue and expenditure. Let’s take another look at the data. In June, China’s trade surplus reached US $97.9 billion, another record high. At this rate, China’s surplus in one year is as high as trillion dollars. What does surplus mean? Generally speaking, it is the money we earn from selling things, and there are nearly 100 billion dollars left a month after we spend on other people’s things. Among the major economies in the world, only China has such a state.
What we need to do now is to speed up the development of the military, because there are many robbers in the world. If you don’t have a strong enough military, people will see that you are so rich that they have to find a way to rob you! Isn’t the United States trying to pull its allies to rob China?