Zhai Dongsheng, an imperial scholar of the Communist Party of China (CPC), suggested that the CPC should use the epidemic and the Belt and Road to promote the internationalization of the RMB to replace the “American Dream”. Taiwanese economists commented that the CCP’s ambition is greatly exposed and will only force the U.S. to take action.
Zhai Dongsheng, a senior policy advisor to the Chinese Communist Party and professor at Renmin University, said in a video program that the CCP’s “Belt and Road” is not only chasing other people’s energy and mines, but also “the young lives of the countries along the ‘Belt and Road’. Young lives”.
According to Zhai Dongsheng, in the post-epidemic era, the dollar dream is going to wake up, and CCP bonds will become the benchmark of global value, and “we (CCP) are turning into the center of the world”.
Wu Jialong, chief economist at AIA Capital Wealth Management, told Epoch Times that the Chinese Communist Party’s ambition to internationalize the yuan is linked to the strategic deployment of the Belt and Road. And the Belt and Road is not just an economic deployment, but a military deployment wrapped up in it.
“The Belt and Road did originate as a way to export excess capacity in infrastructure abroad and also to enhance the internationalization of the renminbi, which was originally the case, but then it turned out to be focused on getting Iran.”
Wu Jialong said that the Chinese Communist Party took advantage of the fact that Iran was under international sanctions and had no relatives, and used the purchase of oil as bait to force Iran to accept the yuan.
“The Chinese Communist Party said to it that I buy oil from you, do you accept the yuan, and finally it said yes, yes, yes, some of it, at least. As a result, the Chinese Communist Party got this idea of using the yuan to partially replace the petrodollar for this transaction, that is, using the yuan to settle certain oil transactions. This oil transaction is called a futures transaction not a spot, and it’s a worse quality of oil, not the best quality of oil.”
But if the Chinese Communist Party tries to challenge the petrodollar by settling oil futures transactions in yuan. Wu Jialong, on the other hand, believes that the Chinese Communist Party is talking big.
“Before you go thinking about the dollar, at least you have to think about surpassing the euro or being close to the euro. You are not even the euro (over) well, so the actual challenge to the dollar this is a bit bad, and a bit in the suspicion of big talk.”
Wu Jialong said the key currency is divided into two kinds, one is called the settlement currency, one is called the security currency. In terms of security assets, in terms of value storage tools this aspect, the dollar is definitely the first choice. There is no other currency in the world that can compete with it.
If the yuan is to rise, it must first be used in trade before people are willing to use it as a reserve asset. “So the renminbi is now working in the same direction as when the yen was going to expand its use, to be adopted first in the trade sector first.”
However, one of the keys to expanding the currency’s use is trust. But China has seen frequent debt crises, financial turmoil and Internet P2P products bursting into flames. How much trust do people have in the yuan?
Zhai Dongsheng, the CCP’s imperial scholar, has made no secret of his intention to export the dictatorial model to Asian, African and Latin American countries, “exporting our experience and ability to have a strong government.” Wu Jialong believes that the CCP’s naked ambition will prompt Western countries to wake up and be on guard.
“The way the yuan is operating now is clearly treating others as enemies instead of competitive partners and partners. So I guess the West will definitely be wary and on guard, and that will increase the difficulties of internationalizing the yuan.”
Wu Jialong said that the dollar is actually behind the barrel of a gun, that is, military power and financial power is two feet walking, two missing. “But now China’s ocean-going navy are not yet established, the air strike force, missile force, and the sea force, and other are not yet fully able to catch up to the level of the United States to challenge the United States, this thing in the end is to force the United States to do.”
Wu Jiarong called Xi Jinping “the loser of the Communist Party”, “the accumulated achievements of three generations of reform and opening up, in Xi Jinping’s generation to lose all.
The Communist Party initially claimed that the Belt and Road Initiative was to help Asian, African and Latin American countries with infrastructure development. However, these infrastructures did not generate enough economic benefits, resulting in national debt. It was called a “debt trap”. The Chinese Communist Party then hypocritically made agreements with these countries to lease their ports and terminals for 99 years, turning them into military bases for the Chinese Communist Party.
Although the CCP thinks it has won, its military expansion will lead to Western countermeasures.
Wu Jialong said, “The CCP’s actions may eventually lead to military bases overseas, which will be operated in a roundabout way through the Belt and Road, so it is not exactly an economic issue, but involves geopolitical issues in the middle. So it is estimated that in the end will certainly lead to the United States, Western countries and so on, including Asia’s Japan, South Asia’s India we all join forces to deal with.”
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