In simple terms, China’s plan of action is to become richer and summarize its legitimate role as “Middle Kingdom”. Zhongnanhai, the headquarters of the leadership of the Chinese Communist Party, wants to show that communism can actually provide the structure to ensure responsible government, a clean environment and economic wealth.
On closer inspection, the process of restructuring China’s domestic economy from manufacturing to services already makes US tariffs less effective. Since 2013, China’s GDP growth has been increasingly driven by the service sector and domestic consumption.
The country’s strategy will be to redouble efforts to develop the Belt and Road Initiative.
Finally, “in the countries of Central and Eastern Europe, the economic recession will be less severe than in the EU countries, and recovery will be faster, although historically high profitability will decline due to aggressive rate cuts and lower lending growth.
(BIS) and to accelerate the recruitment of beneficiary countries within its sphere of influence. This means consolidating access to those markets, integrating Chinese companies into those economies, establishing long-term supply flows of raw materials, resources and agricultural products, while taking steps to encourage the adoption of Chinese technical and technological standards. Given the scarcity of alternatives, it would be logical to assume that the majority of countries will agree to join the initiative by integrating into Beijing’s sphere of influence.
In addition to focusing on the countries affected by the “New Silk Road”, China was also the main sponsor of the Regional Comprehensive Economic Partnership (RCEP), which became “active” in November 2020.
In commercial and geopolitical terms, this is China’s response to the Trans-Pacific Partnership (TPP). There are 16 members: Australia, Brunei, Cambodia, China, India, Indonesia, Japan, Laos, Malaysia, Myanmar, New Zealand, Philippines, Singapore, South Korea, Thailand and Vietnam. Together, they represent 25 trillion dollars of GDP. This group will enjoy continuous growth in trade volumes and value, becoming increasingly aligned with Beijing in geopolitical terms.
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FxAnt
US gives us something to root for