China decoupling from the US

 Not many are aware of how important the strategic move that China made in starting the BRI projects. That is why so much demonising moves have been raised against the BRI, by the USA and the West, with debt trap being the most prominently narrated. It carried no water and has been demolished for good. China did not put a gun to the leaders of countries wanting such infrastructure development. They came to China asking for help. No force or coercion from China is apparent. India is voluntarily not on board the BRI and tells the whole story.

China, despite the trade war with the USA, is still accumulating trade surpluses in US$, said to be even more than before the trade war started. Buying US treasuries and bonds, as China usually does, is no longer the only option and a safe investment channel, especially looking at Russia during the Ukraine War. Of course, China already saw the danger even before the Ukraine War and hence started the BRI to diversify its surplus US$. Nor is investing in USA properties and infrastructures safe anymore as it turns out recently. The USA is banning Chinese investments in real estate. Chinese investors are not greatly alarmed by such moves, having turned their attention to Africa, South America and South Asia.

The BRI afforded China the alternative to recycle the surplus US$, channeling them into infrastructure developments all across the world in the form of US$ loans for those countries to develop their economy. It is more or less another version of China lifting eight hundred million of its population out of poverty. China is now doing poverty eradication on a global scale, for the rest of the world left in poverty by the Anglo-Saxon Imperialist Whites. Which sensible leader does not relish progress like what China is showcasing today?

China's loans in US$ for those countries for infrastructures cannot be held hostage by the USA and the West, unlike investments in USA Treasuries and bonds. The USA cannot seize every country's infrastructure developed by China inside those countries. Those infrastructures do not belong to China anyway. And the biggest dilemma befalling the USA is the realisation that China is having those loans paid back in Yuan, which is making the Yuan an important currency for such countries to accumulate going forward. It is another nail in the de-dollarisation coffin.

Anonymous