Janet Yellen Visits China To Save The Dollar

The relationship revolves around the U.S. being the largest consumer and China the largest producer in the world. The U.S. depends on China to finance its deficits, while China relies on U.S. capital markets to invest its savings. This relationship has been beneficial to both countries, but it’s now at risk. The U.S. consumes a disproportionate amount of the world’s output and owes a significant portion of the world’s debt. On the other hand, China has been consuming less than it produces, leading to trade surpluses. The U.S. got worried about China’s economic growth, fearing it could challenge its global dominance, which has led to tensions between the two countries. The U.S. believes it’s entitled to lead the world with its democratic capitalism model and justifies its actions based on American exceptionalism. The relationship between the U.S. and China started with misaligned hopes, and it has now turned into an ideological conflict. Secretary Yellen’s recent visit to Beijing dashed hopes of addressing issues like tariffs, investment restrictions, and de-dollarization. The U.S. emphasizes security over economics, and its actions contradict the support it claims for de-risking and hostile trade actions. CHeck Out my other video about Dedolarization and Janet Yellen FOLLOW ME Facebook - Instagram -