Many people have not noticed that in the field of economy and finance, China and the United States have recently held two important meetings in a row, focusing on the fierce confrontation in two major areas, and the final decisive moment is coming?
This is an election year in the United States, and many things really can't be discussed with common sense. For the sake of the election, the Biden administration is eager to reap political achievements, and some aspects want to suppress us, while others need our help, and they are extremely twisted.
For the Biden administration, it is a political achievement to suppress our toughness and please members of Congress and voters, and at the same time, it is an achievement to enlist our help and support to solve the problems that the United States is currently facing.
The two are obviously contradictory, but the Americans don't care about this, they are trying to show "both hands are firm", which can be called a historical spectacle of exchanges between major powers.
Recently, China and the United States have held two important meetings in succession, one to suppress us, and the other may be to ask for us.
In the first meeting, on April 16, Liao Min, Vice Minister of Finance of China, co-chaired the fourth meeting of the U.S.-China Economic Working Group with Vice Secretary of the Treasury Shang Bo on the sidelines of the World Bank/IMF Spring Meetings in Washington, D.C., USA.
The core topic of the meeting was "the global and Sino-US macroeconomic situation and balanced growth," which was mentioned by US Treasury Secretary Janet Yellen during her visit to China a few days ago.
What is "Global and U.S.-China Macroeconomic Situation and Balanced Growth"?
To put it bluntly, this is what Yellen is talking about about overcapacity, and at most the trade deficit between China and the United States, we may also want to add tariffs, after all, tariffs are also an imbalance.
This matter is very complicated, it cannot be solved in a single meeting, and the tariff matter has not been solved after six or seven years?
After the meeting, Yellen met with the Chinese delegation, and I guess she was very proud, you see that I threatened you a few words, and you will be nervous immediately, right? Or am I the mighty United States?
The best thing is to get the US side to dispel this absurd idea, and if it doesn't work, it will drag it out, and maybe there will be nothing to do after the US election in November.
At the same time, we need to try to make Europe and the United States take different attitudes and actions.
What is Europe's attitude? During his visit to China two days ago, German Chancellor Olaf Scholz clearly expressed his opposition and support for free trade.
The second meeting, on April 16, was held in Washington, D.C., for the fourth time.
There were as many as seven main topics at the meeting, and it seems that the financial and monetary sectors have become the focus of both China and the United States at a highly sensitive period when the US dollar is raising and lowering interest rates.
The seven topics are: monetary policy and financial stability, financial regulatory cooperation, institutional arrangements for financial markets, cross-border payments and data, sustainable finance, anti-money laundering and counter-terrorist financing, and financial infrastructure.
The first one on the list is "monetary policy and financial stability of the two countries", which simply says that the dollar will raise interest rates and cut interest rates, and everyone can have fun together.
Of course, it's good to be able to communicate, at least we can get the attitude and the cards clear so that Americans can think seriously about the consequences.
Behind these two meetings is the background of the current game between China and the United States, which is very delicate and dangerous.
Since the US dollar interest rate meeting on March 20, Fed Chairman Jerome Powell has made four important speeches, all of which without exception said that interest rate cuts will not be considered for the time being, and each time it has become more hawkish.
Some experts believe that it is very important that the Americans are waiting for our attitude, whether they can provide support when the dollar cuts interest rates, do not let the dollar fall too badly, and do not grab too many dollars to go home.
If we don't help, Americans need to think carefully about the problems caused by interest rate cuts, how to face and solve them.
In terms of economic and financial cooperation between China and the United States, the Americans have not only spoken out a lot recently, but also acted frequently, and the three economic leaders of the Biden administration, Yellen, Raimondo, and Tai Qi, are all very active.
Americans are in such a hurry, is it true that the US dollar interest rate hike is at the last moment? The Chinese and US economies are about to face a major turning point in 2024?
What is the major turning point? That is, when the US financial crisis broke out and the economy turned around and entered a recession, we succeeded in transforming and taking over the baton to become the backbone of the world economy.
Even if the United States does not have such serious problems, it will enter a long-term cycle of weakness, and many problems and contradictions will not be broken, or will be covered up, but they are already rotten inside.
Two days ago, when the National Bureau of Statistics released the economic data for the first quarter, it was still saying that China is still in the stage of structural adjustment, transformation and upgrading, and has to bear the pain of transformation.
This is the huge difference between China and the United States today, we are in the throes of transformation for the better, and the United States is the accumulation of problems and downward transformation.
This kind of entanglement and entanglement may take at least three to five years to form the background board of the entire world economy.