China’s GDP per capita is estimated at $ 16,600 (2017). It’s just a 106th place in the world. The Chinese has yet to make an effort to start producing quality goods the way the Japanese did in just a couple of years at the end of the 1970s. In the long run, it should be inevitable for a giant country like China to start manufacturing quality goods in order for them to survive and continue to grow and be able to build up their fleet, army and air force, as well as their space technology if they are to have a chance to be able to measure up qualitatively with the US.
More and more westerners realize that buying Chinese junk goods do not pay off. The junk goods often doesn’t work even when it has just left the factory band. The Chinese knows this, which is why they allow and even use as regulator that China’s factories produce pirated copies of branded goods. Pirate copies that unscrupulous western buyers buy and sell cheaper than the market price or at dumped prices. One example is the Danish store chain Netto, which used to sell electronic junk in Sweden. But in order for the Chinese to avoid an economic dependence on the West, in the future, they must make an effort to make merchandise with quality.
But first, they want to crack the almighty dollar by distorting competition in absurdity because of currency differences and encumber the Americans with dept over their ears and by pushing up the repayment of US loan from China to insurmountable levels. US owes China $ 1,200,000,000,000 ($ 1.2 trillion). So much has China invested, mostly in US almost interest-free government bonds which, however, have to be repaid according to the terms. The alternative to repaying is that the United States declare themselves in state bankruptcy or turn their own financial rules upside down by simply refusing to pay. Not much thought is needed to realize that this would cause an economic and military turbulence without any match in the world.
$ 1.2 trillion is equivalent to 19 percent of US foreign debt (2017), and China still has a surplus to invest. Though they may never succeed in breaking the US economy. It is the United States that decides how many treasury bills, notes and bonds they want to give out and therefore the Chinese have been forced to revise their strategy between 2011-2018, which shows that China’s economy is in a dependence to the US. But with US tax policy, the US government’s budget get strained when they don’t issue any bonds. US GDP (2013) was $ 16.72 trillion. The Americans now know that Beijing was trying to push up the US loan ceiling to unsustainable levels and punch a hole in the US economic bubble as they did in 2018 by selling, selling, selling. It’s just that the Chinese risk their own finances in the process. But better to do what you can to turn the winds of fortune than to do nothing at all.
But the low-valued Yuan and the fact that China extracts 98 percent of the world’s rare elements (rare earth metals), and their low quality on technology or, in other words, the low production costs together with industrial espionage are what the Chinese believe are the best Chinese weapons yet. The Chinese work ethic is also one of their best weapons. In August 2015, the Chinese currency was first devalued by 1.9 percent and the following day by 1.5 percent and the following day by another 1.6 percent. Devaluation was an attempt to pump up their own economy. You get US $ 0.15 for a Chinese Yuan at present time. You get US $ 0.0091 for a Japanese Yen, but Japan is expensive for westerners still, and the prices of their goods are high. If it is possible to set an exchange rate artificially, is a philosophical question. Actually, the Yuan should be valued as half the Dollar and quality goods should flow from China, one might think.
It was debated a few years ago in the United States of America if they should print a trillion ($ 1,000,000,000,000) platinum coin to use to pay off its foreign debt to China. I do not know how serious the debate was, but it would be a dishonest act, although it is legal in the US to print a platinum coin with this denomination whilst it is not legal with silver coins, gold coins or banknotes. CNN correctly mentions that such a coin will not contribute to inflation in America because it will never come into circulation. Suppose the Americans could force such a coin on the Chinese with the threat of otherwise unilaterally writing off their own debt to China. What then would the Chinese be able to use the coin for, and what would it be worth? The collector value of a single trillion dollar coin issued by the US government would surely make a realistic value of an estimated $ 100 million for a wealthy patriotic American collector who wants to help his country not appearing to be crooks. But the Chinese will not be able to buy even a larger company for the coin, its value being at most just $ 100,000,000 regardless of what denomination is printed on the coin.
What do you think could happen if the United States coined a trillion dollar coin and tried to force it on China as if it was mony paid back? You can choose to answer what you think it would bring to the United States, or to China, or to the world, or to your country.
Roger M. Klang, defense political Spokesman for the Christian Values Party (Kristna Värdepartiet) in Sweden