It is just the beginning of the war fighting against the global economic terror of Red empire China is ruled by Emperor Xi Jinping. The economic battle leads by the US with the commander in chief is President Donald Trump is operating into the den of economic terror where has been faced the domestic problem and offshore reaction. Mostly, the global market falters, actually, the countries have the trade ties, a free trade agreement with China communist.
The consequence has started in 2015, China financial markets have been engaged in meltdown and nowadays, the situation worsens after the US adjusted the fair tariffs. Obviously, the Steele and aluminum increase 25% and following the other consumption goods affected by the new tariffs that cost China’s economic and financial sector. Despite China intimidates to retaliate but the ugly economic pattern” free market is led by socialism” seems not able to resist the economic vigor of the US, even China couldn’t defend the loss of domestic finance and economy. Nevertheless, the immune economic system of China contains many flaws, actually, the fundament built on stolen technology and malicious conspiracy, while the free market respects the transparency and honesty.
The ugly economic pattern of China also comes from the steal of democratic theory that China condemns” capitalism”. Therefore, the Maoist’s follower has never confessed the failure of communist’s economic theory. Instead, they pride the economic growth and involvement into the arms, space race with the US.
China has been faced with their own problem after the free market beat socialism that causes economic cancer, so the US adjusts fair tariffs affect the economic field and financial sector, it conducts economic cancer aggravates in China’s body. The essential fact is currency, therefore, from March 2018, Yuan lost at least 6% valuation and the more loss is underway to come, in the record, Yuan’s valuation already lost from 2016. The lowest valuation of Yuan cost the benchmark Shanghai Composite Index has fallen at least 20% since March 2018. (some sources attributed Shanghai Composite fell 19% and Yuan lost 6.55% valuation against the US dollar)
China’s currency lost the valuation that could bring the good outcome and the worst consequence.
1-The good outcome: Yuan’s currency reduces the valuation is good for export when the price of goods down, the foreign tourist could enjoy the cheaper price, but Chinese people have to pay more if they travel overseas. Therefore China product has been boycotted worldwide because the consumer fears the poison, contamination, actually, the short life product is no longer interest the people. Nevertheless, the US imposes 25% tariff, it ruins China’s goods in the US market with more than 300 million’s generous buyers. The lost valuation of Yuan doesn’t control by China’s government, the willing of loss currency is the solution to excite the product, unfortunately, China couldn’t gain the profit from the reductive currency’s valuation.
2-The worst consequences:
-The domestic market in mainland: Chinese people panic when Yuan lost the valuation and the future is uncertain, actually, the government is out of control the currency, so Chinese people, including the communist members, all don’t want to keep Yuan, instead of the US dollar or Euro, so they could rush withdrawal the savings or investment with the US dollar, it creates the currency’s crisis as the circumstance of Argentina in 2001, President Fernando De la Rua resigned after the people refused to take Peso, instead the US dollar. Nevertheless, the wealthy families, almost linking with the communist party could abandon Yuan and store the US dollar, it is the natural reaction to protect the assets. The psychologic consumer contributes to the economic nervousness in the mainland, Chinese people must avoid the damages, they try to keep the US dollar than Yuan.
The foreign companies operate in China could withdraw the cash with the US dollars to avoid the loss.
-The overseas finance: When Yuan lost the valuation, almost the foreign banks and monetary firms try to keep the US dollar and staying away from Yuan. It causes Yuan will face more loss.
Yuan lost the valuation causes China could face the foreign currency’s crisis while Beijing does need to cover the cost of the rapacious plan of one belt and one road and the deficit’s repayment. Moreover, China communist regime also plunged into the deep debt is over $USD 23.6 trillion in the first quarter of 2017 and now, the debt adds. As IMF warned China’s debt figure to be 234% of GDP (Gross Domestic Product). The debt predicts up to 300% GDP in 2022, the time is on the corner. China’s economy and finance have been stood on the brink of collapse, China is going to kill themselves by their rapacious ambition with the global hegemony, Chinese dream is turning to the nightmare.
From many decades ago, during China’s economy boomed, Western countries deeply involved the trade ties and finance with China and the banks and monetary firms accepted currency of China in the market and exchange. Unfortunately, now, Yuan lost the valuation that causes the nervousness, therefore, the damages couldn’t inevitable.
The best solution is changing Yuan to the US or Euro currency from the People’s Bank of China as quick as can if they don’t want to lose more money. The war against global terror still struggles, the weak economy of China is clear, it is the time to get out the involvement with the largest communist country. After the war fighting against the global economic terrorism, the peace will come when the free market disappeared the dishonest and the economic terrorist. It is the good lesson for the countries developed the economy in collaboration with the communist country, the short-term profit making that is the disaster in the future./.