preface
Today, let's talk about a very interesting international drama - India, in the tide of global de-dollarization, on the one hand shouting that he does not want to use RMB, on the other hand, he is looking at China's large investment, this operation is simply "want to be a referee again, and want to play football again"!
You say, isn't this a blatant shackle on your feet?
Today, let's take a look at the story behind this and see how India thinks and how it has brought itself into a complicated situation step by step.
Under the tide of global de-dollarization, how will India choose, whether to continue to gamble or turn back? Let's move on!
The Global De-dollarization Trend: Country Choices Under the Wave
You see, the current situation of global de-dollarization is like the big guys in the village suddenly realizing that they have been fetching water from the well of the village chief's house, and what if the village chief is unhappy one day and cuts off the water source?
So everyone started digging their own wells, even if they were "stuck" one day.
In particular, Russia, after experiencing the Ukraine incident, was quite uncomfortable by a series of financial sanctions imposed by the United States, and now it can be regarded as a complete understanding of the truth that "you can't put all your eggs in one basket".
And United States is indeed quite capable, holding the big sickle of petrodollars, harvesting wool everywhere, and from time to time giving you an inflationary output, which makes the whole world panic.
At such times, the BRICS countries stood up and said: "We should play our own game, and we can play the economy without dollars!" ”
China and Russia took the lead and directly achieved up to 99% local currency settlement, which is faster than the old king next door to buy breakfast.
India's Pride and Contradictions: The "Outliers" in the BRICS
But at this critical moment, the India brothers showed a very unique attitude.
It went so far as to claim: "Oh, we still have to keep some choices, and we don't want to be completely tied to the big ship of the renminbi." ”
As soon as these words came out, they immediately caused a lot of discussion and surprise.
If you look at India, the economy has indeed developed to a certain extent in recent years, and it has become the fifth largest economy in the world, and the result has begun to flutter, and I feel that I am about to be able to sit on an equal footing with China's big brother.
Their Prime Minister Narendra Modi even shouted loudly from the stage: "We want to become the next China, or even surpass it!" ”
This kind of ambition is really higher than Mount Everest, but the road under their feet is far from paved.
China vs India: a true picture of power
Let's take a closer look at China and Made in China.
China is the world's famous "factory of the world", there is really nothing that cannot be manufactured, and it can be made very well and cheaply.
In the layout of the global manufacturing industry, China is undoubtedly the brightest star.
India, on the other hand, has been trying to attract foreign investment, but to be honest, it still has a long way to go.
Its credit rating is only BBB-, which is several notches worse than our A+ in China.
Not to mention manufacturing, India-made goods, want to compare with Chinese goods in terms of price and quality, it is simply like hitting a stone with tofu, completely self-deprecating.
India's Economic Woes: The "Flight" of Foreign Capital and the "Embarrassment" of the United States and India
Speaking of which, India's attraction to foreign investment in recent years can really be described as "one trade-off".
Since 2014, many foreign companies have withdrawn from the India market one after another, as if to escape the plague.
Large companies such as Carrefour and Ford have said that they really "can't afford to hurt" in India, and they would even rather return to China to live a more difficult life than continue to struggle in India.
In the past seven years, as many as 2,783 foreign companies have withdrawn, which is really distressing to hear.
Looking at the cooperation between the United States and India, it has really gone through twists and turns.
United States capital ambitiously poured $35 billion into India's steel company, expecting to make a big profit, but ended up falling into a huge pit.
When the India government announced that the company was saddled with up to 130 billion in government debt, United States capital was directly dumbfounded, and had to share the debts with it, and even Citibank's assets were frozen.
This series of things can really be said to be "losing the wife and breaking the army", and the investment environment in India is really incomprehensible, really "incomprehensible".
India's miscalculation: the gap between ideals and reality
India, this time it is really a bit "the heart is higher than the sky, and the life is thinner than paper".
It treats China as a competitor and forgets that it is still on its way to catching up.
Rejecting RMB settlement is like rejecting a ticket for in-depth cooperation with China, and shouting that it wants to attract Chinese investment, which is more logical than a tongue twister.
The huge gap between India's credit rating and the actual business environment is like an insurmountable chasm that discourages foreign investment.
The Euro-American Trap and India's Future: A Choice in the Gap
Speaking of which, India still has to guard against the "sugar-coated shells" of Europe and the United States.
In fact, the developed countries of Europe and the United States do not want to see other countries rise economically besides us, which will threaten their interests.
The various trade barriers and protectionist policies they have set up are actually traps for latecomers like India.
If India wants to make a certain breakthrough in manufacturing and avoid falling into the "middle-income trap", then it must find a path that really suits itself, rather than just blindly confronting or depending.
epilogue
So ah, this brother of India, in the tide of global de-dollarization, really has to weigh his position.
Do you continue to cling to those unrealistic illusions, or do you keep your feet on the ground and work hand in hand with partners like China? After all, cooperation is a win-win situation, and confrontation will only hurt both sides.
We Chinese pay attention to "harmony and wealth", and I hope that the Indian brothers can also understand this truth as soon as possible, and stop letting those unrealistic dreams stumble their own steps.
There is still a long way to go, and what India needs to do is to recognize the situation, adjust its strategy, and stop letting those wrong judgments drag itself into the trap of Europe and the United States.
After all, the wheels of history are rolling forward, and no one can stop the pace of the times.
India, it's time to make a choice.