Opportunity from struggle between the United States and China, economist says

The Chinese authorities have promoted the use of the yuan in all over the world, while the United States dollar dominates global transactions.


BEIJING – Regarding investment prospects, one The Chinese economist predicts once-to-century opportunities will emerge from a “struggle for supremacy “between the United States and China.

This game-The change of window comes from the upheaval on both sides, said Liu Yuhui, director of a finance research department at a government think tank, the Chinese Academy of Social Sciences.

China is set on becoming a great nation, he said, while the United States embarked on a dollar-print policy from the coronavirus pandemic he has changed the financial equilibrium.

This is according to a translation by CNBC of his mandarin-language speech, entitled “The bipolar world under the United States-dollar super- expansion cycle – The Chinese capital market’cognitive revolution.’ “

Liu, also chief economist of Tianfeng Securities, spoke on Friday at asset manager ChinaAMC’s investment strategy conference. Founded in 1998, ChinaAMC is one of the largest mutual fund managers in the country and has 1.54 trillion yuan ($ 240.63 billion) in assets in management.

In Liu’s view, the United States is implementing the concept of “modern monetary theory” (MMT), which supports governments with your own hard currency can print money for support the servant economy without worrying too much about budget deficit.

One of the best known supporters of modern monetary theory is Stephanie Kelton, former chief economist for Democrats on the US Senate Budget Committee ea senior economic advisor to Bernie Sanders ′ 2016 presidential campaign.

The United States, under the Trump administration and later the Biden administration, have kept interest rates low and released trillions of dollars in economy for support growth in the awakening of the pandemic.

The stimulus program has drawn criticism for its ladder. At the annual meeting of the Berkshire Hathaway conglomerate in May, longtime American billionaire Warren Buffett business partner Charlie Munger said modern monetary theory could be “more feasible than everyone thought. But I do know that if you just keep doing it without limits it will end in disaster.”

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Meantime in China, the Chinese Communist Party in power just celebrated its 100th anniversary on July 1, when President Xi Jinping called again for the “great rejuvenation ” of China.

In Liu, the government the position of this means policy will focus on guaranteeing national safety and cutting carbon emissions. He stressed that political correctness will be equal more critical for investment in light of developments like The controversial speech by Alibaba founder Jack Ma last fall and subsequent suspension of IPO of Ant Group.

Mainland China Equities with the highest chance of big gains will be those in the new energy, seed, optics and semiconductor industries, among others, Liu said.

How for digital currencies, on which the Chinese authorities have intensified their crackdown on this year, Liu threw them in geopolitical terms also.

“In my view, “he said,” is just the United States’ way tempt Chinese capital “.

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