Delve into the realm of China’s economic power with a deep analysis of Xi’s masterplan. Discover the country’s success in the real economic war and gain insightful knowledge on how it achieved triumph. This blog post uncovers the intricate details of China’s strategy and its impact on the global economy. Get ready to be amazed by the country’s progress and their vision for the future.
Unveiling Xi’s Masterplan: China’s Triumph in the Real Economic War” – An Insightful Analysis
Introduction
For many decades, the US has been at the top of the game, taking control of the global commodities. However, nowadays, the story is changing as China emerges to be the world’s top commodity power. Despite facing multiple sanctions from the US, China is still advancing and securing everything it needs for growth to compete effectively with the US. According to recent reports, China is hoarding resources, including oil, gas, gold, and grains to become a global superpower.
China is Winning the Global Commodity War
The rush for commodities is the real economic battle, and China is winning it as they follow the US playbook to control the supply of natural resources. This strategy is paying off, as China controls approximately 80% of the global rare earth elements market and 65% of global lithium-ion battery production, which is essential for electric vehicles.
China’s manufacturing industry is the main economic powerhouse, and to maintain its dominance, China has to secure all their manufacturing inputs, especially energy. That’s why China is buying everything to create a comprehensive supply chain of raw materials and secure the inputs needed for their production needs. With their extensive investments and control of critical natural resources around the globe, China is well positioned to continue being the world’s top commodity power.
China’s Dominance in Food Reserves
China is expected to control the majority of food reserves, including corn and wheat stockpiles, resulting in push-up global food prices. The COVID-19 pandemic accelerated this trend, as many countries prioritized their national food security and started hoarding their agricultural resources and products. China’s moves could create a domino effect that may harm food prices and availability for other countries if China chooses to restrict exports.
US-China Economic Tensions
The US made the single biggest mistake by miscalculating China’s rise to commodity power, creating conditions for China and Russia to unite. Despite the multiple tax sanctions imposed on them by the US, Chinese firms are advancing without Western-chips. It is evident that the US-China economic battle is no longer just about trade, but it’s more of a technological power struggle.
China has its strategy, and it’s no longer just a follower of the US. They’re now dictating the rules of the game and have become the leader in the world’s commodity market.
China’s No Limits Partnership With Russia
China and Russia have a No Limits Partnership, which creates an economic alliance that ensures that the two countries can unite together and secure the required critical commodities. This partnership is aimed more at undermining the US dollar’s dominance since they are moving away from it and using their currencies in international trade.
Conclusion
China emerges as the top commodity power globally, and despite facing multiple sanctions from the US, the country is still advancing and securing everything it needs for growth to compete effectively with the US. Their strategy of hoarding resources, including oil, gas, gold, grains, and many more, has paid off in their global rare earth elements market and global lithium-ion battery production. Their strategy of securing a comprehensive supply chain of raw materials and natural resources is why China is well positioned to continue being the world’s top commodity power.
FAQs
- Why does China’s dominance in food reserves hurt other countries?
Ans: China’s expected control of the majority of food reserves, including corn and wheat stockpiles, may lead to a surge in global food prices. In situations where China decides to restrict exports, it may mean a deficit of availability of food resources for other countries, leading to a domino effect. - Why is China called the world’s top commodity power?
Ans: China’s dominance in the global commodity market stems from the country’s exceptional strategy of hoarding natural resources, including oil, gas, gold, grains, rare earth elements, and lithium-ion battery production, just to mention a few. This strategy has put China on top as the world’s top commodity power. - What is the US-China economic battle about?
Ans: Initially, the US-China economic battle was about trade, but the battle has now evolved into a technological power struggle. China is slowly becoming technological giants, and the US fears its position as a technological world superpower is slowly diminishing. - How did China become the world’s top commodity power?
Ans: China has become the top commodity power by securing all of their manufacturing inputs, especially energy. Their strategy of hoarding natural resources, including oil, gas, gold, grains, and rare earth elements, has paid its dividends and put China on top of the world as the leading commodity power. - What is the partnership between China and Russia aimed at?
Ans: China and Russia’s No Limits Partnership is aimed more at undermining the US dollar’s dominance since they are moving away from it and using their currencies in international trade. The economic alliance ensures that the two countries can unite together and secure the required critical commodities.
