In the late 1990s, American Capital caused more than one trillion US dollars in bad debts for Japanese banks, causing Japan to completely lose its development opportunities in the semiconductor and communications industries.
I had previously observed that Western countries were attempting to use similar methods against China.
Over the past two decades, manufacturing has shifted to China on a large scale. China has adopted a monetary strategy of pegging its currency to the US dollar and purchasing US bonds, creating a monetary environment conducive to foreign trade.
What follows is the loss of monetary autonomy, which is a relinquishment of rights.
At the same time, America pressured the RMB to appreciate and forced China to open up its internet industry through equity investment and creating a favorable listing environment, leading to a large number of internet companies listing in America.
Under pressure from the other side, China's financial industry also opened its doors to a great extent, and until 2010, Wall Street and Silicon Valley were confident that they could control China's industries.
Everything changed starting in 2010. America’s internet giants were kept out of the country, and the opening up of the financial sector remained superficial.
Even American retail businesses cannot gain a foothold in China.
America's shift began in 2010, not in 2016 as commonly believed.
Beginning in 2010, America mobilized its propaganda machine to deeply ingrain the "China threat" theory in people's minds. This is similar to the propaganda preparations made before targeting Japan in the past.
Japan has plundered America's economy and industry; Japan is buying up America; Japan's electronics industry and other sectors threaten America's security.
Then came the comprehensive tariff increase in 2018, the purpose of which was to force the restructuring of the industrial chain.
This process is painful, like the Seven Injury Fist. China faces supply chain disruptions, while America and other developed countries face inflation—uncontrollable inflation.
Vietnam and India saw this and that's why they've been moving closer to America in recent years.
However, America's ultimate goal is not ultimate confrontation, but to do the same thing it did to Japan back then: control China's economy.
The ultimate goal is to acquire high-quality Chinese companies at low prices.
However, the unexpected events of 2020 disrupted their plans. That year, the amount of money injected into the economy reached trillions of US dollars, and the balance sheet rapidly expanded from 4 trillion US dollars to 7 trillion US dollars.
America's response at the time was to have mining giants unite to export high-priced iron ore to China, with capital driving up the iron ore index in the speculative market.
Iron ore trading requires contracts to be signed in accordance with trading indices. A global shipping squeeze began, causing prices to skyrocket, while oil-producing countries united to support prices.
In order to save the economy, China had to massively inject liquidity into infrastructure projects. The social financing stimulus in the first half of the year spurred a sharp rise in the real estate market.
During the trade negotiations that year, China opened up its financial sector, and foreign capital began to flow in in large quantities.
The wave of foreign investment entering China began in 2020.
Let me recount the news from back then:
BlackRock, the world’s largest asset management company, received approval last month to establish a partnership with a Chinese state-owned bank.
Vanguard Group, an asset management company, said it will move its regional headquarters to Shanghai.
Citigroup became the first American bank to obtain a fund custody license in China.
**** plans to acquire all equity in Huaguo Partners, which is primarily responsible for Huaguo Fund's business.
As a result, real estate, stock markets, and the RMB exchange rate surged that year. Meanwhile, chip-related electronics companies such as Huawei and ZTE faced suppression and restrictions from the United States, while TSMC, Samsung, and others saw a sharp increase in exports to China.
At that time, China faced a situation similar to that of Japan back then: the RMB exchange rate was rising rapidly, and the prices of imported crude oil, iron ore, chips, and other commodities were soaring.
Of course, China responded quickly, stopping monetary easing in the second half of the year, implementing unprecedentedly strict anti-money laundering measures in banks, and investing heavily in high technology and 5G.
Seeing that it could not force China to fully open its markets in the short term, America chose to sell off assets and drive up commodity prices.
This context is the economic trend in 2021.
America's plan was well-conceived: to ignite China's capital market, sell off assets while shorting China's indices, and plunder China's banking system.
Wait until the financial and electronics industries hit rock bottom before buying in.
However, several unexpected events occurred at this time. The arrival of magic allowed the countries of Earth to see a completely new direction for technological development.
Magic represents a completely new technological system and a new direction for technological development, not a childish game found in folk fantasy.
Whether it's the Demon Brain, the Magoin, or the Soul, they are all manifestations of a scientific system in different civilizations. The Magoin, in particular, is an incredibly ingenious design.
With the existence of new scientific systems, Western countries have seen hope of overtaking others by taking a shortcut; it's not just semiconductors that are high-tech.
I'm pretty sure the biological storage technology pioneered by China and Russia originated from Merlin.
The new biotechnology system means that developed Western countries, except for America, no longer need to be subservient to America or continue to play along with it.
On this brand new track, everyone is on equal footing, and America's advantage is negligible.
Not only the European Union countries, but even Japan and Korea are starting to get restless.
The Americas can no longer command the world like it did before 2022, giving China a rare strategic respite.
Meanwhile, in this new arena, China, with the scientific and technological talent it has cultivated over the past two decades, also has ample confidence to compete with America.
This chapter is not finished, please click the next page to continue reading!
Continue read on readnovelmtl.com
