The collapse of the yen triggered volatility in Asian currencies, and the Federal Reserve took the opportunity to threaten another interest rate hike. This has led many investors to worry about whether the Asian economy will repeat the financial turmoil of the 1990s, which does not seem to be the case.
The Asian economy is fundamentally stable, and the United States misjudged the situation; At the same time, Middle Eastern capital has deployed heavily in China, making the hegemony of the dollar even more unstable. In the face of this changing world, the United States needs to recognize the changes in the world pattern and adjust its outdated mode of thinking.
"The United States is stirring up trouble in East Asia, should we withdraw our money from Asian stocks and bonds?" Recently, Mr. Zhang's confusion has also plagued many other investors.
In fact, behind the Fed's "ruthless words" to raise interest rates is a wrong judgment of the US side: if it grits its its teeth and raises interest rates, it will crush the Asian economy. However, this idea is clearly out of touch with reality.
Industry experts pointed out that compared with the 1990s, China's current economic strength is not what it used to be, and it has become the ballast stone supporting the stability of the Asian economy. Southeast Asia has also been deeply integrated into China's economic system, forming industrial chain cooperation. This has put the Asian economy on a solid footing.
Data shows that China's GDP will reach 19 trillion US dollars in 2022, continuing to remain the first in Asia. China's trade with ASEAN, South Korea and Japan has exceeded the $1 trillion mark. Economies such as Southeast Asia have also received Chinese capital support.
"This kind of highly integrated regional economy is not something that the United States can fight if it wants to. The expert said. In stark contrast to the misjudgment of the US side, Middle Eastern capital is increasing its investment in China's economy. According to industry announcements, Saudi Arabia's sovereign fund is spending tens of billions of dollars to acquire shares in a number of top Chinese companies. More Middle Eastern capital is also intensively deployed.
Experts point out that this stems from the distrust of Middle Eastern countries towards the United States. For a long time, the United States has failed to fulfill its commitments to ensure security in the Middle East, resulting in Middle Eastern countries no longer abiding by old agreements such as the use of US dollars for settlement. "The game between China and the United States has intensified, and Middle Eastern capital has seized the opportunity and chosen to work more closely with China. This is a heavy blow to the hegemony of the dollar. ”
"That's the way it is, we should continue to hold Asian assets. After listening to the expert's analysis, Mr. Zhang breathed a sigh of relief. Indeed, the United States misjudged the solidity of Asia's economic fundamentals, while Middle Eastern capital further weakened the hegemony of the dollar. This needs to be looked at with a new perspective.
Today's world is undergoing major changes unseen in a century. The hegemony of the dollar has been shaken, and the old order dominated by the United States is facing chaos. In this environment, every country is running for its own survival and development.
China has always adhered to the path of independent development. And the countries of the Middle East are also actively looking for new strategic directions. As for Japan, it can only crawl under the iron hooves of American financial capital.
In this changing situation, the strategic choices of China and Middle Eastern countries are highly compatible. Both sides are eager to break the hegemony of the dollar and rebuild a fair and reasonable world financial order. With a huge market and endless development potential, China is an ideal place for value creation for Middle Eastern capital. Middle Eastern capital can provide stable and long-term support for China's economy.
The latest phase of the cooperation is a new round of recharge of Chinese assets by Middle East capital. In the face of the Federal Reserve's strong interest rate hikes, the yen plummeted and started the battle to defend Asian currencies. But China's economic fundamentals are rock-solid.
As a result, Middle Eastern capital seized the opportunity and threw trillions of dollars into the Chinese market. Through direct investment in industry and equity, Middle East Capital has helped the development of Chinese enterprises and achieved considerable investment returns. This fully demonstrates the strategic mutual trust and win-win partnership between the two sides.
In this changing situation, the strategic choices of China and Middle Eastern countries are highly compatible. Both sides are eager to break the hegemony of the dollar and rebuild a fair and reasonable world financial order. With a huge market and endless development potential, China is an ideal place for value creation for Middle Eastern capital. Middle Eastern capital can provide stable and long-term support for China's economy.
Some investors believe that the competition between China and the United States may continue to heat up, and the United States still has a way to go, such as tightening the high-tech embargo. Therefore, it is still necessary to be cautious about the evolution of the situation. Some investors also said that in the short term, the economies of various countries are facing difficulties, and asset allocation still needs to be judged and not overly optimistic.
How do you view the impact of the current Sino-US game on the Asian economy and the hegemony of the US dollar? Has the United States lost its dominance? Is it beneficial for Middle Eastern capital to turn to China in the long run? I look forward to seeing your unique views in the comment section!
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