Eight Ga is dead, my heart is not dead! Death will also be made in China! U.S.-Japan join forces to subvert Asia?

Recently, the sharp decline in the yen's exchange rate has sparked widespread speculation about the potential impact of an election year in the United States. Some analysts believe that this exchange rate movement may be due to the nervousness and uncertainty of the American people about the election results. However, simply blaming the "madness" of the Japanese side for this economic phenomenon clearly requires careful consideration.

When exploring the root cause of the fluctuation of the yen exchange rate, the change in the RMB exchange rate has become a factor that cannot be ignored. Although the renminbi's exchange rate is relatively stable and has not fluctuated significantly, the Japanese economy has been severely affected by this currency fluctuation.

Against this complex economic backdrop, both the United States and Japan are struggling to maintain the stability of their monetary policies, but this task is clearly not an easy task. In the face of a sharp decline in the yen's exchange rate, what are the intentions of the two governments, and what are the motivations and strategies behind them? This is not only the focus of financial markets, but also a part of the global economic landscape that deserves in-depth observation.

Let's take a closer look at the US dollar's moves in the Asian market from a macro perspective. In this market competition, the US dollar is undoubtedly the dominant force, and its clever use of the yen as a strategic pawn has caused it to suffer a significant blow, which has triggered a massive devaluation. In doing so, we cannot ignore the synergistic role that the won could play, perhaps joining forces with the dollar in an attempt to break through the exchange rates of Asia's major currencies.

Japan's recent quiet adjustment of its interest rate policy has created hidden economic pressures in parts of Southeast Asia, further exacerbating the liquidity crunch in the region. This makes Southeast Asian countries' foreign exchange reserves more vulnerable, setting the stage for future economic fluctuations.

This was followed by a sharp depreciation of the yen, which dealt a heavy blow to Southeast Asia's exchange rate defenses. If one or two countries are unable to withstand such pressures, their exchange rate systems may be at risk of collapsing. If that happens, we will face the threat of a significant depreciation of our assets, or worse, we could fall back into the shadow of the 1997 Asian financial crisis, plunging the entire Southeast Asian region into an economic abyss.

The US dollar has taken advantage of this opportunity and is ready to enter the market in a big way to reap the rewards handsomely. This reflects the deep coveting of the US dollar in Asian markets, especially in Southeast Asia. After all, this region is not only an important processing and manufacturing and entrepot trade base for China's manufacturing industry, but also an extremely active area for currencies such as the yen. In the face of such an important market, the ambition of the dollar speaks for itself.

Recently, Vietnam's local currency exchange rate has suffered a significant decline, and the situation is grim. However, at such a critical juncture, the solid performance of the renminbi has become the cornerstone of the stability of Asia's financial markets. Despite the recent fluctuations in the RMB exchange rate, the overall stability is still strongly guaranteed, and the current exchange rate remains in a narrow range of 7.23 to 7.24.

It is clear that the United States' attempt to indirectly influence the renminbi by putting pressure on Japan has not succeeded. With the exception of the Japanese yen and the Vietnamese dong, the exchange rates of other major Asian currencies have shown strong resilience and maintained a relatively stable trend. However, this does not mean that the US strategy has failed completely.

Given the deep influence and consistent style of conduct of the United States in global financial markets, it is unlikely that they will easily give up their penetration and intervention in Asian markets. At present, the depreciation trend of the yen has not reversed, the dollar interest rate has not shown any signs of lowering, and the Federal Reserve has even issued a threat to raise interest rates, all of which indicate that the US offensive continues. Therefore, we must not take our guard lightly and continue to strengthen the stability of the renminbi.

In delving into the deeper factors behind why the dollar has not been able to shake the renminbi's stable position, the core of our focus is on understanding the real intentions behind the US strategy. In the construction of the monetary world, each currency must rely on a solid underlying asset to ensure the stability and credibility of its value. For the renminbi, the real cornerstone is the overall health and vitality of the Chinese economy.

The stability and growth of China's economy, especially the strength of China's manufacturing industry, provides an indestructible guarantee for the value of the renminbi. The solid position of China's manufacturing industry is not only the core driving force for China's sustained economic growth, but also the key to its resistance to various economic risks and challenges.

However, it is worth pondering that the prosperity of China's economy and China's manufacturing industry is highly dependent on foreign trade and export markets. This has become a key entry point for the United States to try to weaken the position of the renminbi. The real goal of the US government is to try to make China's foreign trade difficult at all costs through various means.

To achieve this, the U.S. government has adopted a series of sophisticated and elaborate tactics that have resulted in a combination of punches. These tactics include, but are not limited to, trade wars, technology blockades, diplomatic pressure, etc., aimed at weakening China's export capacity, which in turn will have an impact on China's economy and ultimately destabilize the position of the renminbi. However, the resilience of China's economy and the strength of China's manufacturing sector will be key to withstanding these challenges. In the context of the turmoil in the global financial market, the US dollar continued to raise interest rates and tighten liquidity, like a huge shadow hanging over global trade, resulting in a sharp decline in international trade activities, bringing unprecedented challenges to the manufacturing industry of major producing countries. This knock-on effect has had a profound impact on the stability and development of the global trading system.

According to recent data released on the official website of the United Nations Conference on Trade and Development, the total global trade volume in 2023 has declined by a significant 5% compared to the record high in 2022, to about $30.7 trillion. This data is a visual reflection of the current weakness in global trade.

Among the many advanced economies, Japan and South Korea, as important manufacturing powerhouses, also have to face the dilemma of trade deficits. Germany, a country known for its manufacturing industry, has also struggled in the financial turmoil. In this global context, the mainland's exports are also facing severe challenges, and the manufacturing industry is under tremendous pressure.

This series of phenomena not only reveals the fragility of the global trading system, but also makes us deeply aware that in today's globalized world, economic fluctuations in any country may trigger a global chain reaction, and in the face of such challenges, countries need to work more closely together to deal with various uncertainties in the global economy.