On the Internet in China, more and more large Internet companies are very fond of the lending business. In Jack Ma, this business was said to be a huge help to small and medium-sized enterprises and some people who need money, but in this process, they only charged about 20% of interest.
But no one has ever cared about what kind of debt trap a country or individual without repayment will fall into after this. He will never pay the loan.
This debt trap is established in individuals and in countries.
In recent years, the United States has been constantly trampling more and more national economies through debt traps, especially in recent years, the United States' national strength has gradually declined. When technological hegemony and military hegemony cannot help the United States achieve economic expansion, relying on finance to plunder some specific overseas countries has become the main source of wealth for the US government.
In fact, the United States has never given up plundering wealth from China, but why can China avoid falling into the debt trap of the United States?
How the West forced out a new financial system
Recently, Western economist Philip Pilkington published the latest academic report saying that only "foreign lending with Chinese characteristics" can be broken.
In this report, he mentioned that China is the country most familiar with the potential negative factors in external reception, because in the 19th century, China was weak because it launched an opium trade with China, allowing a large amount of silver to flow into the UK.
The poor and weak Qing government could only use Chinese taxes as collateral to borrow from HSBC in the UK, and since then it fell into a debt trap. The high interest rate on this loan cannot be paid off anyway.
Now China has become the most powerful economy in the world. With the support of huge industrial production capacity and trade scale, China has the most powerful economy in the world.
So China now has the strength to establish another global model.
At present, China is experimenting with its own hard currency loans. Not only does "Panda Bonds" have many advantages in US dollar loans, but RMB loans will replace the status of US dollar loans in the future.
The United States is now losing its global monetary reserve status, and interest rates in the United States are beginning to rise. China's loan interest rates are more advantageous, and the lower loan interest rates will not cause some developing countries to fall into the debt trap all of a sudden.
China's increase in low interest rates will make RMB loans an increasingly attractive source of loans.
More importantly, China will not risk damaging its reputation and use its powerful economic power to make "panda bonds" an extractive lending.
In other words, the financial hegemony of the United States and Western countries will not change. China has been wet in history, so it will give other countries an umbrella.
Strategic layout: How China and Russia build financial infrastructure
Whether it is Russia or Ukraine after the war, international financial loans are needed to restore the country's production and manufacturing.
According to the Observer Network's report on September 13, Russian Finance Minister Anton Siluanov recently revealed in an exclusive interview with Russia's Issue that Russia and China are planning to establish clearing agencies to reduce their dependence on the Western clearing system and avoid risks.
According to the Russian Satellite News Agency, the Russian State Atomic Energy Corporation is preparing to issue RMB bonds in China.
When the news came out, almost all of them were sarcastic on China's Internet. Few people talked about the issuance of this panda bond to the internationalization of the RMB and the RMB, and the great significance to the Chinese people.
Russia is now also interested in establishing a new liquidation system with China to avoid financial crackdowns and sanctions from the United States and Western countries on other countries in the future.
This is a good thing for China to gain both fame and fortune.
may also be the strongest challenge to the dominance of the US dollar since World War II.
This is not an ordinary financial cooperation, but a direct response to Western financial hegemony. After the Russian-Ukrainian conflict in 2022, the United States and the West freeze about $300 billion in Russia's assets, most of which (about 183 billion euros) are escrowed by the European Clearing Bank.
The West may not have expected that this excessive sanctions will accelerate the global de-dollarization process and give birth to a new system that may replace itself.
The United States is now using tariffs and technology to sanction China. If it wants to curb China's development, it is very likely that it will use financial sanctions to limit China's development in the future.
The China-Russian planned liquidation agency is not just an alternative, but also a strategic infrastructure. This agency will "perform independent custody functions" to allow Russians to invest in Chinese assets and also allow Chinese investors to provide financing for overseas projects.
De-dollarization: How to restructure the global financial landscape
The hegemony of the US dollar is facing unprecedented challenges. The number of U.S. foreign financial sanctions has long become the "first choice". In the 20 years since the "9/11" incident, the number of designated targets for U.S. sanctions have increased from 912 in 2000 to more than 9,400 at the end of fiscal year 2021.
But this abuse is backing the US dollar itself. Russia, Iran and other countries have actively shifted from US dollar settlement to euro, RMB and other currencies.
But no professional organization for this kind of liquidation will become very troublesome and have no credit guarantee. China and Russia establish clearing agencies to provide review and guarantee for countries that use non-US dollar trade.
De-dollarization is not a slogan, but a practical action. The Russian Federal Savings Bank has signed an agreement with the Bank of China, and all energy trade will be settled in RMB and rubles in the future.
So the scale of energy and currency settlement between China and Russia will be larger in the future, so a comprehensive clearing mechanism must be established.
Even the US's own agricultural state legislators recently jointly submitted a letter asking for exemption of sanctions from Chinese banks because 90% of their soybean exports are settled through Bank of China.
Saudi Arabia has begun to settle part of oil trade in RMB, and has pierced a hole in the US dollar's "oil settlement hegemony".
Bank of International Settlements shows that in the first quarter of 2025, the RMB's share of global payments has reached 4.98%, just one step away from the 5.11% of the euro.
The days of the US dollar overlord may not be too long.
