It's a pleasure to be on stage again today to talk to you about 2022, which you care about most. First of all, I want to tell you a very strange story. You all care about the news, the United States occupied Afghanistan for 20 years and spent $2.26 trillion on the military. Recently you looked at the pictures of Afghanistan on the news, and it was really very dilapidated. Can't the United States take half the money out of it to do infrastructure? Build a water plant, a power plant, a highway, a railway, and so on. No. Of the $2.26 trillion, only 3.9 billion are aided to Afghanistan. Why?
In the end, we found that this country, its thinking is completely different from ours. Because Democracy in the United States is for the sake of different interest groups, all the senators have different interest groups behind them. Why tell this story to you? If you understand 2022, you won't be able to judge America in terms of our thinking.
So where are our strengths? Why is our 2022 better? It's from the pandemic. There is only one country in the world, and that is China, which has controlled the epidemic. This is a very difficult achievement. In other words, a good system is a system that can protect the people when our country encounters a major crisis. The strong execution of our government in this epidemic will be the key to our better tomorrow.
As I said, the competition between China and the United States in 2022 is an important determining factor. Let's start with the trade friction between us and the United States in 2022. I'm telling you today, do you know who is the biggest victim of so many tariffs? It should be us, this is reasonable, isn't it, otherwise why are you fighting this battle? No, ordinary Americans. The data speaks to who bears the tariffs imposed by this trade friction. We found that ordinary Americans bore 92.4 percent of the increased tariffs. You see no, two words – ridiculous. This is a ridiculous trade friction.
What about us exporters? What about the producers? Only 7.6% was burdened. And in 2021 we had a trade surplus, a record high. So I'm announcing to you that starting today, there will be no more trade wars in the world. Why? Whoever starts the trade war is the biggest victim. There is only one reason, that is, China's victory is because it has the most complete industrial chain in the world, no country can compare, you can not get rid of China. For example, according to the classification of the United Nations, China has 41 industrial categories, 207 medium categories, and 666 subcategories.
So let's look at the financial war. Why am I talking about this topic? I think it's a new financial war. For example, as soon as the epidemic broke out, according to the general people's thinking, the outbreak of the epidemic government to fight the epidemic is it. No. The U.S. government doesn't say that, so why does he? He prints money. I just can't understand, why would you do this? And how much money do you print? The one-year increase rate is 110%! What a concept this is, doubling. Is it necessary for you to print such a large number? After printing so many banknotes, 50% of the people in the United States earn more than before. I think it's a financial war you can't imagine, not a simple pull-up of the stock market. So what do we do?
The countries of the whole world have only two choices, first, you follow the seal; second, you do not follow the seal. So what is the result of the printing? As a result in the United States now, severe inflation. The European Union followed the steps of the United States, printing 60% and the United Kingdom following 65%. What is the result? It is impossible for Americans not to know that such a large amount of printed money must be inflationary in the world, that is, the price of commodities soaring. Crude oil, for example, rose 315 percent, natural gas rose 321 percent, copper futures rose 95 percent, and soybeans rose 85 percent. So what's the result? The U.S. stock market has skyrocketed, and guess how much the U.S. stock market has risen? U.S. stocks rose 116 percent. What about house prices? House prices will definitely rise, interest is so cheap, mortgages are so easy to get, it will definitely rise. So the house price index also rose by 20%. Printing with the United States has risen, including the European Union and the United Kingdom.
Guys, don't look at the rise of only 6.2% (inflation), the necessities of the People's livelihood in the United States, what toilet paper, food rose by more than 20% to 40%, that is intolerable. If it's 6.2 percent, a quarter of a percent (inflation) doesn't look serious, but that's a country with a good economic foundation. The bad one blow collapsed. For example, Argentina printed 60% and the European Union is almost right, its inflation is 52%, which is 10 times that of the European Union!
What about China? We chose not to print money because we didn't want inflation like the United States. How many do we print? 9%。 The United States is 110%, we are 9%, what is the result? China's CPI (Consumer Price Index) was only 0.7% in September and 1.5% in October, what does this mean? Less than 3% is called deflation. The United States prints money indiscriminately, we do not print, the renminbi will inevitably appreciate, an appreciation of 11%. That's bad for exports, right?
Then as a result of the U.S. printing money, the price of bulk goods around the world has risen, so the PPI (Producer Price Index) has risen, how much has it risen? Up 13.5%. So what's the result? The manufacturing PMI (Purchasing Managers' Index) fell below 50%, hitting a new 19-month low.
As I said, the U.S. stock market is printed, but our stock market is sideways. And then what? Of the 70 large and medium-sized cities, the property market fell in 52. In other words, the result of printing is very bad, and the result of not printing will not be too good. This is a strategy of total loss. So how should we deal with it? We don't have a big seal, we're starting to make a little small print now. Reduce the reserve requirement ratio by 0.5 percentage points, and promote the healthy development and virtuous cycle of real estate on October 6. But our stock market is path dependent. Looking at how the United States is doing, how China's economic system is, whether the enterprises are good or not, and whether the government prints money or not, this is very complicated.
So if the U.S. starts raising interest rates, I believe our consumption will slowly rise, and of course I hope that consumption will rise. The depreciation of the renminbi is an inevitable trend, as long as the United States raises interest rates, it will depreciate. Imported inflation will slow and manufacturing will pick up.
Okay, and then it's about the U.S., the climate war. Carbon neutrality in 2060, will we take a hit? Folks, please think about it, our Economic Development in China is lagging behind Europe and the United States for a while. We need to develop now, can you still develop by carding you?
If carbon neutrality is achieved in 2060, it means that there are 283 trillion yuan of new energy investment, and who will ultimately spend this wealth? Europe and the United States definitely hope to spend their homes, but I tell you how much China has achieved in new energy in recent years.
Photovoltaic, a breakthrough in the whole industry chain. The upstream has been the world's first for 11 consecutive years, that is, silicon materials; the midstream cell module has been the world's first for 15 consecutive years, fully controlled; and finally the downstream photovoltaic power station has been the world's first for 7 consecutive years. China's photovoltaic output value accounts for more than 70% of the world's share, the United States now has only one, as long as the United States reduces the import tariffs to the same, it will immediately collapse.
Wind power? Take a look at the blades above and we're in full control. The midstream is not good, and the bearing of the wind turbine still needs to be imported, which is our short board. Downstream wind power operations, our installed capacity for 13 consecutive years in the world's first. So basically two in control. Our wind power base production accounts for more than 65% of the world's total.
Then please look at this data, this data is particularly interesting, you may all think that photovoltaic is very expensive, right, no, very cheap. Now our coal power is 3 mao 2 one kilowatt hour electricity, only offshore wind power is more than 3 mao 9, 4 mao 6 or so. New energy vehicles, that is not to mention, you see the red are All China, the first place is Tesla. Commercial batteries don't say, midstream, new energy needs to be imported; downstream, vehicle manufacturers we are also in full control.
Okay, you see, a new energy, a photovoltaic power station, its market value is more than five major power generation companies, great. In 2022, we will become the final winner of the climate war, and in 2022, wind turbine production will account for 70% of the world, photovoltaics will account for 80%, and electric vehicles will account for 55% of the world!
In the end, the high-tech war was involved in the United States, and the next day after Biden took office, he immediately launched a 337 investigation into Lixun Precision and so on. Why? We have two big advantages. The first, red is us, and China will surpass the United States to become the world's largest consumer. You see Qualcomm, the Chinese market revenue accounted for 63%, how do you fight this chip war? To tell you a word, the loss of technology to the market will inevitably decline, and the market can cultivate its own technology, technology to suppress the market is only a short victory, and the market's self-created technology is the ultimate victory. If you really suppress success, I tell you that the first to go bankrupt is not us, it is Qualcomm.
Second, the state pushes. For example, Liu He will lead the research and development of China's third-generation chip raw materials. Not silicon, but a new material. I'm just giving an example, the state pushes, how much money is invested? A trillion dollars, this kind of financial strength, this kind of execution, this kind of boldness is not something that ordinary enterprises can do, it must be promoted by the state. But we can't be too proud, we still have many aspects that can't be done, for example, 70% of the high-end bearings are controlled by Europe and the United States. And this, I'll give you an example, the XA100 adaptive variable-cycle engine. This is where we need to make up for the shortcomings.
But we have two big helps. First, we have the largest market in the world; second, we have the government with the greatest executive power to push, so victory must be expected. After listening to me, guys, is 2022 going to be better?