Extraordinary Genius

1702. Who is paying for the 1702 chapter?

In fact, I have found it now, saying that China is a big country, this is not a derogatory term.

If you are doing high-value-added precision manufacturing, then the profits are very high, such a manufacturing country like Germany, the United States, Japan, etc., will become developed countries.

China, the so-called manufacturing powers, rely on cheap labor to become the world’s factories, which is an export-oriented economy.

To put it simply, China’s foreign trade is mainly aimed at earning foreign exchange through exports.

This model can quickly improve technology and efficiency, and enhance international competitiveness, but at the same time there is a great risk that it is excessively dependent on the international market.

Once the international market changes, it will have a serious impact on this economic development model, or even a blow. The cost of this kind of economic development is great.

Developed countries are all domestic demand-based economies, and they pursue high consumption, high wages and high investment.

China’s foreign exchange earns a lot of foreign exchange, and then? Part of it is used to make foreign exchange reserves, and the other part is mainly to buy foreign bonds.

Foreign bonds are issued to promote their own consumption. That is to say, if you buy someone’s bonds, it is equivalent to sending money to others to let others live a profligate life.

How much money a bond can earn, that is, it can save you money. But people have used your money to stimulate the domestic demand economy, and have already earned more.

China cannot rely on cheap labor as a means of competition, and cannot use environmental destruction as a means of development. Such development is very unsound.

Just as China has the world’s largest foreign exchange reserves, it seems to enhance the country’s ability to resist risks, but it also has a huge disadvantage, that is, it is easy to be kidnapped by foreign exchange, especially the US dollar.

When the dollar is sold, the financial market will be affected, affecting China’s stockmarket and affecting the exchange rate of RMB. The result is that you can only buy foreign exchange, but you can’t sell it, which is equivalent to helping the stable balance of the US dollar.

The economic strength of the country, the United Kingdom, and the prosperity of the financial market have a lot to do with the status of their currency in the world. But this status is not the same as 10%.

Just like that year, Soros did not bring people to attack the British pound exchange rate, and then made a lot of money. It was also the time that the US dollar replaced the British pound and became the first currency in the foreign exchange market.

China’s upper class has actually noticed this. Now they are gradually reducing these low value-added products. Just like the clothes and shoes used to be, they are indeed very competitive internationally, but with the EU’s anti-dumping ticket, it’s not Has it been significantly affected?

China is also doing import substitution at this time, which means developing technologies related to products that China has to import, so as not to be restricted by foreign countries.

Just as China is the world’s number one pen-making country, the ball-point pen is a little guy, but it must be imported from abroad.

The best technology is Japan, then Germany and Switzerland. It looks like a small thing that is worthless, but after it is formed, it is a lot of profit.

This also directly reflects that China is still far from the world in terms of some high-precision materials.

Is China missing some scientific research talents? Of course not, China’s talent is absolutely very adequate.

But many people are doing other things, such as focusing on military technology. Of course, this is true. The military is not strong enough to be a strong country.

However, the combination of military and civilians is too bad. Many technologies can be directly used in civilian applications, which can improve people’s livelihood and create profits, so that more funds can support the development and innovation of technology.

The export-oriented economy is good or not, very good, but the export-oriented economy depends on its own economic advantages. If the technology is perfect, even if the funds are better, if it is just a cheap labor, what do you say is proud? of?

The country has developed, and people have earned no more. This is not right, right? Only people’s living conditions are better, that is what people expect.

China has always said that the development model of other countries can only be a reference, and it must not be copied. This is the truth that everyone understands.

Because the national conditions of different countries are different, no one can develop according to the model of others. Just like the original Thailand, according to the model of others, and then how much is hidden, how bad is the result?

Even without the participation of Feng Yu, Soros took the lead, which would have severely hit the economy such as Thailand and implicated a string of countries closely related to its economy.

China is worried about this happening, so it has increased its foreign exchange reserves, but not too much.

In fact, the above has also been discovered. Too many foreign exchange reserves have serious drawbacks. It is the most correct way to raise the status of the national currency in the international arena.

China has too many national debts of the country, which is equivalent to binding its own economy with the country of the United States. If the dollar depreciates and stimulates the appreciation of the RMB, the debt of the country in China will shrink.

For example, if the exchange rate changes from 1:8 to 1:7, then the country originally owed China 800 million yuan, and now only needs to return RMB 700 million, which will reduce the debt and fiscal deficit of the country, which is equivalent to China’s rice country. If the debt is paid, it will also cause inflation in China.

If you want to do nothing, continue to buy the US dollar, pull up the exchange rate of the US dollar, and let China continue to increase the foreign exchange reserves of the US dollar. Then the cost of China’s exports to foreign countries will rise and competitiveness will decline.

Mainly because the money owed to China by the country is too much, China has too much foreign exchange investment in the country.

This exchange rate change will have a serious impact on China’s property. You look at the yen, the exchange rate is very low, can you say that Japan’s economy is not good?

The appreciation of RMB is already a trend. At this time, we must try our best to avoid losses and make this trend slower and more reasonable.

Money must be consistent with purchasing power, especially in combination with the country’s economy. This is fundamental.

Of course, many questions may be considered by Feng Yu. After all, some of the upper-level government dynamics, he does not know much, but China’s trade surplus is too strong, a large amount of international hot money flooding into China, this is definitely not a good thing.

In particular, this trade surplus is largely based on export subsidies. Many companies rely on this export subsidy to make a profit. Can such a company be developed well?

China’s exports are severely restricted by international technical barriers, and there are more and more anti-dumping cases against China, which will bring a lot of losses to China.

This time the economic crisis in the country, want to let China and other countries to pay, then Feng Yu will find a way to let the country pay for this idea!

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