Historically, China devalued its currency to boost exports. Now, facing international pressure over its massive trade surpluses, Beijing is allowing the renminbi to gradually appreciate. This represents a significant regime shift in its economic and geopolitical strategy.
The strengthening diplomatic, economic, and military ties between Russia and China since the Ukraine invasion have created a powerful "axis of authoritarianism." This bloc, combining China's economic might with Russia's resources, represents a formidable and unified adversary to the US and Europe.
Despite the public "bromance" between leaders, China is exploiting Russia's economic isolation by demanding steep discounts on natural gas for the Power of Siberia 2 pipeline. This pricing dispute reveals the true, unequal power dynamic in their supposedly "no limits" partnership.
Official US government data showing China selling Treasuries may be misleading. Experts suggest China likely holds significant amounts of US debt through undeclared custodial accounts in countries like Belgium and the Cayman Islands, obscuring the true scale of its holdings.
While Elon Musk's Neuralink faces cautious FDA scrutiny, China has already granted the world's first commercial approval for a brain-computer interface. This less "squeamish" and faster regulatory process gives China a crucial edge in commercializing frontier biotech.
Trillions in five-year fixed-term deposits made by Chinese households during the pandemic are set to mature. With yields dropping from 5% to 2%, savers will be forced to chase higher returns, potentially driving a massive flow of domestic capital into China's stock market and wealth management products.