U.S. Firms Lose $130B
As the saying goes, "Disregard the advice of the elderly, and suffer the consequences immediately."
In the context of the Sino-American rivalry, China has long stated that cooperation and mutual benefit have a brighter future than a zero-sum game.
Even if the United States chooses a zero-sum game, it will ultimately be the one to suffer.
However, not only did the United States not heed this advice, but it also stubbornly pursued its own path, ultimately confirming this outcome.
According to U.S. research institutions, the zero-sum game chosen by the United States has not only failed to knock down Chinese companies but has also resulted in losses of hundreds of billions of dollars for American companies, while Chinese companies have grown stronger.
Is the United States about to admit defeat?
On one side, American capital is fleeing, and on the other, the American media is beginning to reflect.
Is the United States about to face its opponent honestly?
Biden's competition is the foundation of everything; only competition can lead to progress.
Yet, the current United States has abandoned its previous free competition and instead adopted a closed-door policy.
This is just the beginning of harming both others and itself, and the loss of hundreds of billions of dollars is just a ripple in the collapse of the dollar's hegemony.
Advertisement
Recently, according to a report published by the Federal Reserve Bank of New York, since engaging in a zero-sum game with China, American companies have not gained a huge market and profits due to American protection but have suffered losses of nearly 130 billion dollars.
In contrast, Chinese companies have faced significant crises under the American blockade in the past, but they have strengthened their capabilities, offsetting the negative impact of the United States.
It can be said that the United States is finally beginning to reflect on its own actions.
As we all know, China is the world's largest producer of industrial goods, but at the same time, it is also a provider of intermediate goods.
The United States is different; it controls the global distribution network and has the pricing power for many products.
This means that in the past, the United States saw Chinese goods occupying a huge market share in the United States, but what it didn't realize is that the profits from these goods were actually earned by American multinational corporations.
Furthermore, according to our import and export trade data, Chinese private enterprises account for about 60% of the market share in China's import and export trade, while foreign investment accounts for more than 30%.
And this is still the data since the United States initiated the trade war.
If we look at the data from the past two decades, we will find that foreign investment can account for more than half of China's foreign trade.
A large part of these enterprises come from Western Europe and the United States.
Among them, Apple, Nike, and others are among the most profitable enterprises.
Now that the United States has initiated a trade war and does not allow Chinese goods to be sold well in China, is it the Chinese enterprises that are finding it most difficult to make money?
In fact, it is not, because Chinese enterprises were already at the low end of the industrial chain in the past, so they earned hard-earned money.
Now, with the United States doing this, Chinese enterprises are vigorously developing underlying research and development and upstream distribution, while European and American enterprises have become decorations.
Therefore, it seems that the United States is targeting Chinese enterprises, but in fact, it is harming American enterprises more.
And this is just the beginning, after all, everyone knows that the United States' largest industrial product is the dollar.
Since we are not importing Chinese goods, will China continue to import dollars as a reserve currency?
Now the United States casually says that China has excess capacity, but doesn't the dollar have excess capacity today?
And the most crucial point is that the dollar used to be backed by oil, but is that really the case?
After all, oil is the blood of industry, and how many countries in the world are industrialized?
In contrast, Chinese products are actually hard currency.
Therefore, Chinese goods are the most solid foundation at the bottom of the dollar, and today the United States has dismantled this piece itself.
For us, it is a danger, after all, the market has disappeared, but it is also an opportunity, after all, our core assets are there.
The United States has lost a lot.
Cooperation benefits both parties, while competition harms both.
Today's United States seems to be encircling China, but in fact, it is just burying its own past.
For us, perhaps this is just the beginning.
Today's China and the United States are in two dimensions, China is the manufacturing industry, connecting the world through goods, while the United States is the financial industry, connecting the world through the dollar.
But the main reason why the dollar can connect the world is that the dollar can buy all kinds of goods.
For us, the renminbi can also do this, but can the United States produce all kinds of goods?
So it seems that the United States is fighting a trade war, but in fact, it is just forcing us to develop the financial industry, thereby replacing the position of the dollar.
After all, this is the only way left by the United States for us, and the only way left for the United States is to produce all kinds of goods.
So who has a greater difficulty here?
Of course, the difficulty of the United States is greater, after all, since the Obama era, the United States has been vigorously advocating the development of the manufacturing industry, but where is the manufacturing industry in the United States today?
In contrast, China's renminbi internationalization is progressing rapidly, and we have accounted for the fourth place in the SWIFT system, and there are more in other fields.
Moreover, Russia is now vigorously promoting the so-called BRICS internal settlement, which is an opportunity for us and a huge crisis for the United States.
So it seems that the United States is encircling China, but in fact, it is forcing China to make up for its shortcomings, thereby becoming an all-round warrior, and it can only be said that the United States has made a great contribution.
And the United States itself can only be said to have lost both the wife and the soldiers, and the only way left by the United States may only be one, that is, to cooperate with China.
And such opportunities are not many.