In recent years, China has been characterized by following to the letter each of its plans both financially, socially and culturally. History does not lie, the Asian country follows each one of its processes from A to Z.
It is important to emphasize that we do not make value judgments, we do not analyze if their plan is perfect, if we like it or not. We are talking exclusively about your discipline to operate and compete. For example, the culture of this country considers: “I am responsible for myself, but above all for others and for those who are sick”. In this context, it is striking that it was the only country that closed its doors to the world again with the Zero COVID-19 emblem, stopping its exports and imports, halting its economy and slowing down its growth. China seems to have a very clear concept: money recovers, life doesn’t”.
China is the second strongest economy in the world, it is also the first power in human capital, it has innovative technology and it is the country with the greatest potential to buy debt in other countries. Its companies are located all over the world and its communities outside the country are the largest in the world.
This leads us to reflect and question: do they know something we don’t about COVID-19? Are they preparing for it? Are they willing to lose financial ground to prop up their currency? These concerns open the door to further questioning. One thing is clear to us, however: China is preparing for something bigger, stronger. This country is making off-script changes, it is thinking outside the box, risking today for future gains.
However, the rest of the economies are not acting with the same reservations and caution; for example, some G7 countries adopted positions of financial optimism and policies of increased spending. In the same logic, Russia, with the war, strengthened its economic strategy and strengthened its currency.
It is important to remember the article we published earlier in the blog about China and its plan to strengthen the Yuan. A controversial but interesting participation, which makes us reflect on one more issue: Is this China’s real agenda? If so, the financial war and power struggles of the new world order is not even close to being over. For now, what has been observed is a steady and progressive appreciation of the yuan against the dollar.
