Like his direct predecessor, Joe Biden is committed to a global strategy that is clearly directed against China and has done so sworn that China will not “become the leading country in the world, the richest country in the world and the most powerful country in the world … on my watch”. However, in the upside-down universe created by the Covid-19 pandemic, it was Jamie Dimon, the CEO and chairman of JP Morgan Chase, a banking giant with $ 3.4 trillion in assets, who told Biden the truth on the matter.
While Dimon predicted an immediate boom in the US economy “that could easily last into 2023,” he also had worse news about the future. “China’s leaders believe America is in decline,” he said wrote in its annual letter to the company’s shareholders. While the United States faced difficult times in the past, he added today, “The Chinese see an America losing ground in technology, infrastructure and education – a nation torn apart by politics and racial and income inequality and being crippled. ”and a country incapable of coordinating government policies (fiscal, monetary, industrial, regulatory) in a coherent way to achieve national goals. “He was frank enough to say,” Unfortunately, there has been a lot of truth behind this lately. ”
As for China, Dimon could also have added that his government has at least two powerful levers in areas where the United States is likely to prove vulnerable: dominant control of container ports around the world and the supply of rare earth metals not just for information are vital. Technology sector, but also for the production of electric and hybrid cars, jet fighters and missile control systems. And that’s just an incomplete list of areas in which China will take a dominant position in the foreseeable future. Here is a likely scenario.
The digital yuan versus the (missing) digital dollar
Within the headline of the “world’s second largest economy,” China has either already outperformed the US or is on par in certain sectors.
With a global smartphone market share of 20 percent in the second quarter of 2020, China’s Huawei Technologies According to the International Data Corporation, it was at the top of the charts, marginally outperforming South Korea’s Samsung and, according to Apple, way ahead of Apple. This happened despite a concerted ride by President Donald Trump’s administration to harm Huawei, which culminated in May 2020 when Washington banned corporations worldwide from using U.S.-made machines or software to design or manufacture chips for that company or its companies beginning this September use. With a share of 47 percent in the booming Chinese 5G smartphone market, Huawei at the top of the list There, the company continued to invest in future-oriented cutting-edge technologies and basic research to the tune of 3 to 5 billion US dollars per year.