China’s Potential Benefits from US Debt Ceiling Crisis
President Biden will be cutting his overseas travel short to focus on negotiating the country’s debt ceiling before the June deadline.
The President has made a promise that America is not a deadbeat nation and will not default on its debt.
However, if the US defaults on its debt, China may stand to gain the most.
Gordon Chang, author of “The Coming Collapse of China,” explains how a debt default could play into China’s hands.
China desires its currency, the renminbi, to become the world’s reserve unit, replacing the US dollar.
A potential default by the US could undermine the reliability of the dollar, providing China with a strong argument for promoting the renminbi as an alternative global reserve currency.
Although China has its own problems, such as a non-convertible currency, they see this crisis as part of a long game to eventually eliminate the dominance of the US dollar.
China believes that if the dollar’s stability is compromised, they can strengthen their own position on the global stage.
The consequences for the United States in global markets would include increased interest rates and potential economic turmoil unless the crisis is resolved quickly.
The political system is also perceived as volatile, adding to the uncertainty.
A subcommittee meeting is scheduled to address China’s economic aggression.
Gordon Chang believes that the US will eventually have to take a stronger stance against China, as they have been using every point of contact with the US economy to exert influence and achieve their geopolitical goals.
China’s economic coercion is not limited to the United States but extends to other countries as well.
The crisis at the southern border also continues to be a pressing issue, but it is not covered in detail within the provided information.
Note: This news article is based on the given information and does not represent a real article published by any specific news organization.