China After the Covid-19 crisis, it has redoubled its efforts The most powerful economy in the world. To shore up its plans, the country will even bet on creating a new digital currency to outperform its rival, the United States.
According to International Monetary FundSoon Asia The continent will be responsible for global economic growth, driven mainly by the same region China and India.
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That statement includes those expectations National Bureau of Statistics of China Its in the first quarter of 2023 Gross Domestic Product (GDP) 4.5 percent increase year-on-year (28.499 billion yuan) China It looks like an economy that could bring down the American nation.
At this time America Faces an uphill battle not to fall Bankruptcy That’s because they have a June 1 deadline for the Joe Biden administration and Congress to reach an agreement to raise or suspend their debt ceiling. Therefore, the panorama of the neighboring country is not very favorable.
The economy has other reasons China It seems that there will be a better situation than the neighboring country. So, if you want to know all of them, we recommend you to keep reading this note to know more about the latest ones events.
Chinese vs. America, the world has reached a new economic cold war?
The Trade war between China and US It started in 2018 when Donald Trump was the President of the United States. Then, the President took the decision to impose the customs duty 20 thousand dollar muffins For Asian country products.
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The President argued China He was involved in unfair trade practices like theft of intellectual property. in return, Asian country It imposed tariffs on more than 128 US products.
Later that year, the Strain developed between the two countries. In fact, there was a dispute between them. Technological warfare Both regions are committed to developing increasingly sophisticated programs and computers.
1. Increasing US debt
Accordingly Congressional Budget Office (CBO)debt America Approximately 31.4 billion dollars. This figure indicates that the country can no longer apply for new loans.
2. The crisis of the US banking system
Bankruptcy of banks Silicon Valley Bank and Signature BankThe US economy suffered as it created a wave of panic in the middle Investors He feared that the banking crisis would affect the rest of the world.
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3. China and Russia join forces against the US economy
He The yuan was devalued From 2022 it became a reserve currency Russia, which is the result of the wars that the nation, led by Vladimir Putin, faced for its invasion of Ukraine. It should be noted that the country is half European and one of the largest countries in Asia Oil and gas reserves All over the world.
4. BRICS, the anti-dollar movement has strengthened
Presidents of China, Russia, Brazil and Saudi Arabia, have noted the importance of the world’s dependence on the US dollar, so they propose to replace the currency that regulates the world market. Some believe that this is a great way to create another new currency.
5. China is starting to bet on digital money
Unlike the US, China Aims to embrace the online economy by creating Yuan Digital Its aim is to change the use of banknotes in the future International Payments A faster and cheaper option to use. This move will undoubtedly boost the Asian nation’s trade relations.