Will China replace the US as the new superpower?
China’s Socialist Empire has strengthened enormously since 1949, and many wonder if this mighty economic giant will overtake the United States in the near future.
The rise of China’s economy is beginning, consider that China ranks number three in power on the world stage next to Russia, which includes the number one ranking GDP, which has surpassed the United States and its transparency and influences they are increasing, therefore it is impossible not to be aware of their presence. In addition, the yuan has become the third reserve currency next to 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 money system is accepted globally. This momentum may be consolidated as the best replacement for the US dollar as a universal currency. The recent news that Venezuela is now selling oil for yuan instead of US dollars doesn’t sound so good, plus rogue countries suffering from a Western-imposed sanction are using the yuan as a tool to survive. Also, the number of countries with close ties to China have been doing their under-the-radar trade and investment with the Yuan, they are Russia, Germany, Sweden, Malaysia, Australia, Indonesia and Canada.
Today, China’s 1.3 billion citizens experience a better standard of living, and many have achieved outstanding status, recognition, and power. Their strong growth has increased the number of self-made high net worth individuals and they have surpassed the United States with the most billionaires at 637 to the United States 342. His diplomatic public relations skills being used appear to have 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 its former self, despite still wielding external economic and military power, yet its influence and respect seem to have warmed and its image has suffered a sharp decline among its allies, plus of his favorites are at their lowest point in countries like Africa, Asia, Europe, Latin America and North America. The American Dream seems to be fading due to the decline of 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 says there are few adults in the middle and upper income brackets, but more occupying the lower class.
Today, international investors are increasingly concerned about where they place their investments.
They note that Washington has yet to pass a budget or take credible steps to pay its creditors’ bills. Which is seen as an unsafe haven for investment and that is not good. Lately, the United States has been playing financial sleight of hand by moving money around to make sure they don’t run out of cash. They have borrowed approximately $19.8 trillion, one-third of this amount owed to themselves, $6 trillion from major foreign holders of Treasury securities, which include foreign countries, companies and individuals, $1.1 trillion are they owe to China and the same amount to Japan plus all other US citizens and businesses including state and local government. It is still surprising to see that the international credit rating agencies, Moody’s and Fitch, have given the United States a credit rating of three “A’s”, while S&P has given a credit rating of AA+.
Moody’s, the International Credit Rating Agency, has downgraded China’s credit rating to A1 for the first time in three decades, this is seen as a setback and this action has angered them, while S&P and Fitch have rated China A+. China’s economy has boomed for the last 18 years, but it seems to be cooling off a bit, but despite all this, it is still considered a favorite place for investment that the United States includes most of the stable countries. for 2018.
Recent news from China indicates that during 2018, there will be a movement to ensure that a more sustainable and deep way is used to increase high-quality development that will enrich the global outlook, according to the Chinese president at a high-profile meeting. This move will be enforced to transform in a more intense way in order to bring more prosperity to both China and aboard. This is the news that investors love to hear.
Although the US has the highest term of national wealth and China has the highest GDP, the two 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.