From
George Castro
international analyst
This was announced by the People’s Bank of Beijing Chinese consumers saved $2.6 trillion thanks to three years of abstention caused by the pandemic; and that after January 8, when the government opened China to foreign tourism, and freely promoted the travel of its citizens outside the country, what is foreseeable is that the euphoric consumption experienced up to 2019 will return, immediately using the huge sum saved these last 3 years.
that’s why now a formidable consumption boom is expected this yearsimilar to that of 2019 in which it amounted to 7 trillion dollars, a third of GDP.
A clear sign of this perspective was what happened in the last 7 days of January during the Spring Festival, when 2.9 million trips abroad were registered (120.5% annual growth), and 308 million travelers households (23.1% more in the year). , resulting in domestic tourism spending exceeding $1.1 billion, the second highest in the festival’s history.
This was immediately interpreted by the stock markets led by Shanghai, Shenzhen and Hong Kong, which in less than a week they received investments of over 700,000 million dollars, the highest level since October 2021; and in a single day, the fundamental index – the CSI 300 Index – rose more than 20%, an all-time high for a single day.
Hong Kong’s Hang Seng Tech Index, China’s Nasdaq, has soared more than 60% since October last year, when Tencent and Alibaba acquired a combined valuation of $350 billion, second only to major North American digital platforms .
What China means in the world economy is this It is the main trading partner of 144 of the 192 countries represented in the United Nations; and that is why it accounts for 35% of the growth of the global economy over the past decade, and at the same time the bilateral trade with the United States last year was 639.490 million dollars, an all-time record.
In short, the two superpowers are increasingly integrated in economic terms; and the reason for this is that the considerable export power of the People’s Republic (2.6 trillion US dollars in 2022), finds its preferential market in the North American demand, the largest in the world.
Under these conditions, American policy, not only that of the Executive but also that of Congress, is halt – and possibly reverse – the extraordinary boom of the Chinese economyabove all in the specific area of high technology, where to the historic surprise of Washington and the entire American society, the People’s Republic is contending for primacy in the field of advanced technologies of the Fourth Industrial Revolution (CRI). especially artificial intelligence (AI), the Internet of Things (IoT) and robotization, with the ominous addition that China has gained the lead in 5-G mobile Internet development; and that now – Huawei by the way – is preparing to do the same with 6-G, which would imply a strategic blow of extraordinary scope.
China has become the world’s largest consumer of raw materialsof all together (barn, energy, mineral).
Because of this, the price of one ton of copper rose to US$9,000; and oil was poised to recover $100 a barrel in the second quarter of this year.
All this will be hyper-intensified by the exceptional growth of Chinese consumption, which leads to estimate Kristalina Georgieva, managing director of the IMF, the growth of the People’s Republic can reverse the recession in the world in 2023.
China is today the fundamental engine of the global economy; and the attempt by the United States to hinder or hinder its expansion, especially in high technology, is obviously doomed to failure.
“If you can’t win in war, you must make peace.” In short, the United States he has no alternative but to accept somehow with the other superpower.
It is in this context that the weather balloon shot down this week by a US Air Force missile over the waters of the Atlantic appears, after crossing the skies of the United States for 6 days, starting from Alaska, then moving slowly through the main Midwestern states and along the coast of South Carolina to the Atlantic Ocean.
During its trip, the Pentagon estimated it the People’s Republic weather balloon posed no military or material risk; but even so, President Joe Biden, after suspending Secretary of State Anthony Blinken’s crucial trip to the People’s Republic, ordered its destruction.
The situation can be summarized in these terms: The main risk that the United States is showing the world today is the tremendous weakness of its dominant political systemled by President Joe Biden, who has repeatedly demonstrated his inability to make decisions and support them.
In historical terms it is It is the most critical situation that the United States is experiencing today.; and with it the peace of the world.
Source: Clarin
