The USA is fighting wars not just in Ukraine and Middle
East. It is fighting an economic war against China and Russia. It is
fighting a de-dollarization war against BRICS and the Global South. It
is fighting a space war against China and Russia and wants to weaponize
space. It is fighting an influence war in Africa, South America, the
Middles East and Pacific region against China, Russia and Iran. Can the
USA win them all?
I think de-dollarization has moved a knot or
notch faster in the face of all these wars. Putin's visit to China has
made it clear that relationship between the two countries is moving even
closer, despite the attempts of Blinken and Yellen to sour it. Some in
the USA are blaming Biden for pushing Russia towards China. Now that
they have realized the consequences, what are they going to do about it?
Now the USA is pushing Iran into the arms of Russia and China as well.
With
Russia check-mating NATO in Europe and Iran consolidating its influence
in the Middle East, the USA has to confront China to keep its
credibility in focus. Militarily, it is not an option as that will
destroy both countries with Russia threatening in the background as
well. The economic option is all that is left, and sanctions are not
going to work. Trying to ban Chinese investments in USA is
counter-productive and harms the USA more than China.
The USA is
not the only destination for Chinese investments. There is a wider world
in South America, Africa and Middle East. That visit by President Xi to
Serbia and Hungary is showing the USA and the EU that there are
alternatives for China. And Italy is the first to realize it. Why is
Italy's PM Giorgi Meloni rushing to visit China ahead of others? China
should not trust her anymore after her act of pulling Italy out of the
BRI. She was warned, but she persisted, under pressure by the USA. She
should go to Biden for help now, not China.
Anonymous
1 comment:
Putin and Xi are reported to be meeting again in July. Something big is going to happen. Probably the rolling out of an alternative settlement system to rival SWIFT, together with a new alternative global currency. They are probably putting in the final touches during the coming meeting, after years of working on it.
This is evidently a possible scenario, with China now confident enough to retaliate against USA tariffs and doing the same favor to the USA, EU and Japanese vehicle manufacturers. Is China ready to push the boundaries in its de-dollarization agenda? The Chips war is backfiring, with Huawei and SMIC competing well enough to cause unease in the opposition camp. Once China holds the capacity to export exponentially, it is the end of the Chips Alliance with all the investments and subsidies poured in for nothing.
China has not yet leverage on its EV capacity as only a small percentage of its EVs are exported as of today. But the writing is on the wall and foreign EV makers worldwide are in for a rude awakening within a year or two. Forget about the 100% tariff against EVs made in China by the USA and soon the EU following suit. The USA and the EU should worry more about their own carmakers losing the China market instead of shooting their own feet.
Post a Comment