Center for Strategic Assessment and forecasts

Autonomous non-profit organization

Home / Economy and Finance / Markets: estimates and projections / Articles
The yuan against the dollar and the Euro. What China is preparing
Material posted: Publication date: 30-04-2018
"While the world community is distracted by the political anguish and other information trash porn between Russia and the Western world the real financial and economic in the long term U.S. geopolitical rival grows stronger and stronger.-appreciated learn financial analyst Spydell.

Capacity of liquid monetary instruments area of the Renminbi amounted to 27.3 trillion dollars! Dollar currency area is 13.9 trillion, Euro 14 trillion dollars, yen 9 trillion, the pound – 2.4 trillion dollars, and the Swiss franc is only 1.1 trillion. The ruble currency area is estimated at 740 billion dollars.

This means that China is now comparable to Euro+dollar.

Over the past year in China has created over 4.4 trillion dollars of new money (in RMB) – Russia's six (!) time. There is a record, the anomalous increment of the money supply in China. For comparison, the weight of the dollar (USA) now peredaetsa at 700-850 billion dollars a year.

Exactly 10 years ago, financial instruments, China's volume is 10 times superior to, financial instruments, Russia. Now at 37 times!

Many greatly underestimate the scale and speed of China's development, is very much underestimated. A couple of years ago, XI Jinping in his annual speech said that China is focused on internal development, is not ready and is not going to expansion and the creation of a geopolitical rival of the United States. This is a Chinese trick, it's not.

Over the past 30 years, there are several key turning points for China.

First. In the early 90-ies of the Chinese government was doing everything possible to create all necessary conditions at all levels for large-scale expansion of foreign companies in China. Created the world's industrial center, the country factory. It allowed to develop the industrial, municipal, transport, energy and infrastructure, train the workforce and create a trigger for the development of related industries, serving multinational corporations in China. The net effect of this was the establishment of effective middle-class, urban development, and the economy.

Second. In the early 2000s, and more specifically since 2003, China began aggressively to pump up science in all areas, creating research institutes, laboratories, strengthening the cooperation of businesses with universities and research institutes. Moreover, through investments in science, through various subsidy business (administrative, fiscal, and so on).

In 2014, R&D, China has overtaken all 28 countries of the EU in 2018 is expected to overtake the US, becoming the absolute world leader! But in the mid-90s in China with the science was still in tears, as in Russia. The problem is that Russia is about there were (a few times), and in China an increase of almost 25 times!

Build science and having managerial experience (how and what to do) from working closely with TNCs, China, 2008-2010 (with the more aggressive 2013) began to actively introduce high-tech global company: Xiaomi, Huawei/Honor, Meizu (not counting the previously created ZTE and Lenovo) and countless smaller companies, which are represented, for example, on Aliexpress. I have not even touched on yet automobile industry, heavy engineering and machine tool industry, where China is also aggressively developing. About clothes and consumer goods, even say nothing, then China's leadership is well known.

Third. C 2009, realized the futility of export orientation, the Chinese government began to focus on domestic demand, domestic pump sector debt, while simultaneously continuing to develop the city and displacing tens of millions of Chinese from the provinces to the developed Metropolitan area. This helped to support the growth of the real economy by more than 6% per year, with the slowdown in the prom.production and stagnation of exports.

Of course, all this happened amid an unprecedented construction of monstrous proportions (high speed quality roads and bridges, airports, seaports, Railways and railway stations, power stations, incredible number of meters of residential and commercial properties with intensity more than three times more per capita than in Russia). Unbelievable!

While the clowns poked the spokes of political opponents all places, China is actively growing and developing, becoming not just a significant financial and economic value, but also more than tangible geopolitical entity. Yet it quietly, but China's influence is growing in Africa and South-East Asia (Bangladesh, Thailand, Vietnam, Malaysia, Indonesia, Philippines). Growing real and not like Russia to CIS countries, i.e. China directly affect (directly or indirectly) on the economic and political processes in these countries.

The time will come when China will not need TNCs to promote on foreign markets (Western Europe, Japan and the USA), and own brands, including Xiaomi, Huawei and Meizu, what's going on to put it mildly, very difficult. There is no free trade. The struggle for markets has never been easy. By the way, each of you can personally verify this, if you ask representatives of companies from Aliexpress about why none of their offices in the U.S. and Western Europe. What they will tell you that is not allowed!

Word XI Jinping was a trick, the ascension of China to the Olympus is just beginning. And this Olympus is impossible without strengthening of geopolitical influence. The fact that China is sitting quietly and not bothering anyone says nothing about his intentions (at this time, he gained his power). All ahead! A trade war between the U.S. and China is only the first harbinger of the most large-scale war (of the future) with the 40-ies. The world will be multipolar, but the second pole, as you have seen is not Russia (which is a pygmy on the world's technological and financial-economic map), and China. Just the time China had not yet come, but the destruction of the world superiority of the U.S. will be very painful. USA will not give up without a fight. Russia in the confrontation between China and the United States, unfortunately, can act as a battering RAM, but not a beneficiary."


Tags: USA , China , finances

RELATED MATERIALS: Economy and Finance