Key actions in the China-US economic game.
The United States wants to drag us into the pit of deflation, achieving a future buyout of Chinese assets. Earlier articles have informed you about where China's confidence lies.
1. Why is the US doing this?
For the past 30 years, our China has relied on cheap labor to produce a vast number of goods. Americans could just print dollars to buy them, and the dollars we earned were then used to buy US Treasury bonds, which means we were essentially lending them money to spend, making life very comfortable for Americans. Later, we no longer wanted to be the “sucker,” which made the US anxious, and they began to gamble their national fortune against us—deliberately worsening their own inflation while blocking our goods from being sold, hoping to make our produced items pile up unsold (overcapacity), while ordinary people dare not spend money (deflation), ultimately seizing the opportunity to buy out our industrial chain.
2. Why are we facing deflation despite printing so much money?
It's not that printing money is useless; it's that the US is sabotaging us from behind: they do not allow our goods to be exported. With too many products made domestically and too few buyers, naturally, prices drop, and consumption cannot pick up, reversing the global inflation situation. Additionally, the US is eyeing our real estate, attempting to undermine our monetary control measures and deepen the deflation.
3. How are we responding?
- Anti-involution: Stop overproducing, reduce overtime and the race to the bottom, so that ordinary people have time and money to spend, and deflation can naturally ease.
- Create a unified national market: Break local protectionism, for example, diverting oil and labor from the west to the east, and directing technology and capital from the east to the west, solving the problem of “some places have goods piling up unsold, while others want them but don’t have them.”
- Seize the discourse power in currency and energy: Buy more gold, develop the financial market in Hong Kong to attract international capital; also engage in energy projects to become a “powerful country in electricity,” intending to bind the RMB to new resources like electricity, replacing the old model of the dollar being tied to oil, gradually gaining control over the currency.
4. The final core message
The US is making its last struggle through dollar hegemony, while we rely on the productivity of 1.4 billion people and new energy and currency strategies to respond. The future will depend on whether the RMB and the electricity system can outperform the dollar and oil system.