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China raises five demands during Yellen’s visit
(asiatimes.com)
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this post was submitted on 11 Jul 2023
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I guess you missed the news story about China defaulting on $1 trillion in US debt?
https://thehill.com/opinion/international/4075341-china-is-in-default-on-a-trillion-dollars-in-debt-to-us-bondholders-will-the-us-force-repayment/
@ruck_feddit @yogthos doest the U.S. owe china almost a trillion as well?
The US pays it's bills. China defaulting devalues it's currency, making payment necessary in dollars. The US has a hard limit on how much yuan it will exchange for dollars to prevent a run on the currency. China cannot get enough dollars to pay the bill, while the US is the one country in the world to which China can't just say "lol no." Assets will be forfeit or one sided deals favoring the US will come out of this. The devaluation of the primary currency of a major trade partner means their goods cost less and their interest increases
US economy would collapse overnight without China, thinking that US has some sort of upper hand here is the height of comedy. US doesn't produce much of anything today, its industrial base is around 11% of its GDP, and there is no substitute for China which is central to most supply chains.
China needs buyers. If the US stopped buying from China, it would be the same situation in China. Their economies are so intertwined that a war between them, even just financially, would ruin both
China has plenty of buyers, that's the whole point of BRI and BRICS. Literally all of the world constitutes China's buyers with US being a small portion of that. China would be hurt by an economic war with US, but US would be completely devastated by it because US depends on essential products and commodities it can't get anywhere else. Meanwhile, people thought Russia would be ruined economically once being cut out of western economic system and here we are with even IMF now projecting growth for their economy. Incidentally, trade between China and Russia has already jumped to over 200 billion if you want to see an example of China replacing US with a friendly trading partner.
I want to point out that the fraction of imports/exports between the USA and China is roughly symmetric (by monetary value). In 2022, about 16% of China's exports were to the USA; in 2021, about 17% of the USA's imports were from China.
That being said, you're probably making a valid point about which items are flowing, not just the raw value of goods.
Also, I would think it's generally easier for a producer to find new buyers of what it's already producing, than for a buyer to find a new producer for what it needs.
Edit to add: If we look at the ratio "Exports/Imports", we have about 0.3 for the USA with China, and we have about 3.3 for China with the USA.
Thanks for linking a concrete example of China not giving a fuck about what US thinks. What's US gonna do about it, whinge and cry like the article you linked is doing? 😂😂😂
OoOO you're so edgy! Now watch as the US continues to regionally encircle China via each of their neighbors. They're already moving tech and manufacturing next door to India. Japan and S Korea are building their militaries again in response to continued threats by China.
Wasn't your original argument about how much money and power China has? This makes their bid to become the international business currency look like the economy of Greece. What are they going to do about all of their seized assets across the globe? FIGHT THE US?
You pay up, or you lose your investments. That's how money works. Man, you're bad at this!
LMFAO the least propagandized American has logged on. Go read up on how US war games against China turn out.
Also, it's absolutely adorable that you think that China hasn't protected their assets from US after seeing US seize Russian assets.
The question you should be asking yourself is what US is going to do when China cuts you off from all the stuff produced in China. Not like US has an industrial base of its own like a real country. 😂
I'll wait while you source your info, since I sourced mine. You can respond to: fighting the US, China's financial position in the world and their international debt, or just how you believe China can protect assets on another continent. Go ahead.
It's nice you think I'm American. Throw me some more emojis to try to make your points really stick.
Your source is about US media complaining that China isn't gonna pay their debt. In fact, if you actually read it, then you'll realize that it supports my point that US isn't actually in a position to do anything about it. That's literally what it's whinging about. China's financial position in the world comes from being the biggest trading partner for majority of the countries and producing most of the stuff people around the world consume. China doesn't need to protect assets on another continent because China is buying up commodities like gold that are kept in China https://oilprice.com/Metals/Gold/Chinas-Gold-Buying-Spree-Continues-For-Seventh-Consecutive-Month.html
In fact, US using the financial system it built is a weapons is precisely what's driving countries away from it right now. The whole system hinged on the idea that it was built on top of strong legal protections. Once US decided to steal Russian foreign reserves that demonstrated that it's a completely lawless system. The only legal paths towards seizing foreign reserves is a UN resolution or a declaration of war.
Meanwhile, and foreign borrowers are issuing a record amount of yuan debt, helping internationalize China's currency https://archive.is/A4kcO
And turns out you don't have to be an American to believe nonsense after all.
And as that currency falls to the dollar because the issuer does not and cannot pay it's debts? And as the nations of the world depend on western weapons and must pay for them in dollars? You've actually made my points really clearly without making a point yourself.
Proud of you!
That's not how anything works. China's currency isn't tied to the dollar, and it's controlled internally. Incidentally, this is one of the things US incessantly moans about. US has absolutely no leverage to force China to pay US, meanwhile as the article you yourself linked shows, US keeps paying China. Thanks for making it clear that you didn't actually read it.