The Socialist Empire of China has grown enormously strong since 1949 and many wonder if this powerful economic giant will overtake the United States in the near future.
The rise of China’s economy is alarming, consider that China ranks third in power on the world stage alongside Russia, which includes the number one ranking GDP, which has surpassed the United States plus its transparency and influences are increasing. Therefore, it is impossible not to be aware of its presence. Furthermore, the yuan has become the third reserve currency after the US dollar and the euro.
The Chinese yuan is a strong competitor against the US dollar, as they want to impose more control over their economy, there is a push to make sure their monetary system is accepted globally. This momentum may be to consolidate itself, as the best replacement for the US dollar as a universal currency. The recent news that Venezuela is now selling oil for the Yuan instead of US dollars does not sound so good, and the rogue countries that are suffering under a sanction imposed by the West are using the Yuan as a tool to survive. In addition, the number of countries with close ties to China have been conducting their trade and investment under the Yuan’s radar, they are Russia, Germany, Sweden, Malaysia, Australia, Indonesia and Canada.
Today, 1.3 billion citizens of China are experiencing a better standard of living and many have achieved prominent status, recognition and power. His strong growth has increased the number of self-made high net worth individuals and have surpassed the United States with the most billionaires at 637 to the United States 342. His diplomatic public relations skills that are used seem having had a great impact with other countries far and wide, which has made it one of the most favorable countries today.
Meanwhile, the United States seems to resemble a shadow of what it was before, even though it still wields external economic and military power, yet its influence and respect seem to have heated up and its image has suffered a sharp decline among its allies. In addition to his favorites, it is the historical minimum in countries such as Africa, Asia, Europe, Latin America and North America. The American dream appears to be fading due to the downturn in the economy, and its prospects are becoming difficult for today’s youth to access a better standard of living than their parents of yesteryear, according to an article published in Eureka Alert, by the American Association for the Advancement of Science. Meanwhile, the Pew Research Center, states that there are few adults in the middle and upper income bracket, but there are more occupying the lower class.
Today, international investors are increasingly concerned about where they place their investments.
They note that Washington has not yet approved a budget, nor has it enforced credible actions to pay its creditors’ bills. Which is considered an unsafe haven for investment and that’s not good. Lately, the United States has been playing financial sleight of hand by moving money to make sure it doesn’t run out of cash. They have borrowed approximately $ 19.8 trillion, of which a third of this amount is owed to themselves, $ 6 trillion from major foreign holders of Treasury securities, including foreign countries, companies and individuals, $ 1.1 Trillions is owed to China and the same amount to Japan plus the balance of US citizens and businesses include state and local government. It remains a shock to see that the international credit rating agencies, Moody and Fitch, gave the United States a credit rating of three “A”, while S&P gave a credit rating of AA +.
Moody, the International Credit Rating Agency, has lowered China’s credit rating to A1 for the first time in three decades, this is seen as a setback and this action has infuriated them, while S&P and Fitch rated China A +. China’s economy has exploded for the last 18 years, but it seems to be cooling slightly, but despite all this, it is still considered a favorite place for investment than the United States includes most countries. currently. Stable for 2018.
Recent news from China claims that during 2018, there will be a movement to ensure that a more sustainable and profound way is used in order to increase high-quality development that will enrich the global perspective, according to the Chinese president at a meeting of High profile. This move will be applied to transform in a more intensive way in order to bring more prosperity both to China and on board. This is the news that investors love to hear.
Despite the fact that the US has the highest number of national wealth terms and China has the highest amount of GDP, they both share a relationship as an economic partner and potential adversary. There have been periods of open conflict between the two nations, but the relationship has remained stable.
