#BabyMarvin_f9c7 From overseas, the U.S. and China are engaged in a game of chess on an invisible battlefield, with the U.S. attempting to undermine China. What strategies does China have to respond? Can the U.S. really gain benefits from its malicious targeting of China? Recently, the Zhuhai Airshow has garnered a lot of attention, and people are looking forward to it, possibly more due to the joy of finally standing up after enduring difficulties, and standing taller and taller; this is in the military aspect. However, in addition to the military realm, an unseen battle has already begun between the U.S. and China.
On November 7th, the U.S. Federal Reserve announced a 25 basis point reduction in the target range for the federal funds rate, lowering it to between 4.5% and 4.75%. This is the second consecutive rate cut since the Fed reduced rates by 50 basis points in mid-September. The frequent rate cuts surely have complex underlying reasons.
The reason given by the Federal Reserve is that although the overall condition of the U.S. labor market has somewhat eased and the unemployment rate remains low, the inflation rate 'is still somewhat high'. The Fed hopes that the risks to employment and inflation targets are roughly balanced. Therefore, it chose to cut interest rates.
But is the reality really like this? Perhaps not; maybe the real intention of the Federal Reserve is to 'harvest' other countries. The past tactics of the U.S. through dollar tidal waves to harvest other nations involve using the Fed's interest rate hikes to trap most global capital in the U.S., lowering global capital liquidity, thereby significantly devaluing quality assets in various countries; then, through Fed rate cuts, releasing capital, increasing global capital liquidity to acquire undervalued global quality assets.
On the other hand, according to foreign media reports, American entrepreneur Musk has requested suppliers in the TW region of his companies to relocate their production facilities outside of Taiwan. The reason is the so-called 'geopolitical considerations.'
Although Musk himself has not responded to this, many tend to believe that the rumor has a certain degree of credibility. One reason is that the U.S. only sees the TW region as a 'pawn' that can be discarded at any time, and is trying every means to drain the TW region before the so-called '2027 timeline' arrives.
Another reason can be seen as Musk responding to the Trump administration's call to 'bring manufacturing back', encouraging the migration of high-quality global industrial chains to the U.S. mainland, which is beneficial for the development of American manufacturing and can also increase employment and tax revenue in the U.S.
What can be seen is the malice that the U.S. holds towards China; this multi-pronged approach seems to give the impression that they will not rest until the Chinese economy is crushed. But can the U.S. really achieve this? Obviously not, because China has long been prepared with countermeasures, and at a critical moment, China directly injected 10 trillion to stabilize the prices of quality Chinese assets, also increasing the economic resilience and vitality of the market. If American capital is still attempting to bottom fish at this time and flows into China, it can be said that it is 'lifting the sedan chair' for Chinese assets.
That said, the two major countries, China and the U.S., benefit from cooperation and suffer from conflict. If the U.S. approaches its bilateral relations with China solely from the so-called 'position of strength', it is clearly detrimental to both countries and offers no benefits to the U.S. itself. At a critical moment, U.S. Ambassador to China Burns did not lie and said a straightforward truth: In 2023, the U.S. exported over $31 billion worth of agricultural products to China, boosting our farms, ranches, and fisheries and creating job opportunities. Data does not lie; this shows that China's development is beneficial for the U.S. economy and its people. The U.S. should view mutual development as an opportunity rather than a challenge and work together with China to promote common development.
