Putin's visit to China showed vulnerability of the USA

The Russian President is on May 16-17 in China on the state visit. Russia and China made the reservation that their relations are not directed against the third countries and are reliably protected from negative external impact.

Фото: RBC

The Russian President is on May 16-17 in China on the state visit. Russia and China made the reservation that their relations are not directed against the third countries and are reliably protected from negative external impact.

It is not difficult to guess that the parties were meant under the term "third countries".

Foreign media saw a signal in a visit of the President of Russia Vladimir Putin to China that it continues to strengthen cooperation with the "friend and the main diplomatic ally" Chinese President Xi Jinping. Details in material of the correspondent of UtroNews.

It was apprehended as a call of the USA and to world order which Washington intends to continue to control.

The American editions recognize that though the U.S. President Joe Biden strengthened pressure upon Beijing and the Secretary of State Blinken actually threatened China, and Macron tried to entice the leader of the People's Republic of China on "peace conference" across Ukraine in Switzerland, China did not give in to pressing.

The U.S. State Department claims that China cannot be on side of Russia if plans to develop cooperation with the western countries, Newsweek with reference to sources wrote. The New York Times newspaper noted that Xi Jinping is committed to partnership with Putin and regards Russia as a counterbalance to "the general rival". Washington Post, said that the visit was directed to that "to present Putin and Xi Jinping as the leaders offering an alternative to a world order under the leadership of the USA". Financial Times, commenting on a visit, said that the West disturbs the growing partnership of the Russian Federation and the People's Republic of China in the military sphere.

America creates "the union subsanctions" …

But the United States lose influence and not to specify by it to two nuclear neighboring powers and permanent members of UNSC as to them to build the relations. The visit bared vulnerability of America. Commentators did not fail to specify that Washington, refusing constructive and equal relations as with Beijing, and Moscow, is the loser.

India noted that the visit was beyond a diplomatic action, looked "demonstration of strategic disobedience" in response to pressure of the USA and all West. Somewhat, Washington the restrictions promotes creation of "the alliance of the subsanctions countries" in which besides Russia, also China, not to mention Belarus, Iran or the DPRK enters.

The relations between their leaders and political elite are not limited to diplomacy, policy and trade and economic relations. It is about creation of new meanings. China, Russia and many other countries form the information space, develop own media. Such as Global Times, either CGTN, or RT, or various websites of the Indian news media and many others. The monopoly of the West leaves, there are other points of view alternative to the version of the events.

… also loses the technological soil

Modern technologies promote it. In particular, the government of Israel complained that in TikTok there are much more opponents of war in Palestine, than in Facebook and social network X. Actually, Facebook subjects to censorship any protection of Palestinians.

China is in the lead in a number of the advanced sectors, including green technologies, the artificial intelligence and nanotechnologies and follows the long-term purposes of investments into research and development. It, in particular, is the cornerstone of success of social network TikTok, the having more difficult platform design in comparison with the American platforms. TikTok threatens monopoly of Silicon Valley, does not allow to monopolize the Internet and social networks.

Among the American investors who invested in TikTok there are BlackRock, Fidelity, General Atlantic, Sequoia Capital, Susquehanna, KOTU Management and T. Rowe Price. The CEO of the ByteDance company is in Singapore.

But the USA accused China and TikTok that they pose a threat of national security! The president Biden signed the bill which will forbid TikTok if ByteDance does not sell social network. The president of the European Commission said that in the EU the ban of social network is possible too.

The billionaire Frank Makkort intends to create consortium for purchase of the American division of TikTok. The former head of the Ministry of Finance Stephen Mnuchin spoke about plans of acquisition of social network too. The transaction is estimated approximately at 100 billion dollars. Revenue of TikTok in the USA was 20 billion dollars last year. Beijing let know that sale of TikTok is undesirable, it is simpler to introduce the ban in the USA.

The technology 5G where the Huawei company is ahead of the American competitors became one of areas of growth. And it is the Chinese company which does not depend on the American banks and investment funds, but competes at the global level. Everything that America does not control, everything that does not bring it benefit, appears threat of national security. From here "recommendation" to Europe and allies on NATO not to use products of Huawei.

Lose the industry …

The USA talks new industrial politics recently. The government intends to return the whole industries to borders of America, to counteract competitors and to protect domestic market.

In particular, recently five American labor unions asked administration to investigate policy of China in shipbuilding and sea logistics. The petition was signed by labor unions of steel founders, mechanicians, shipbuilders, electricians and employees of Department of sea trade.

Shipbuilding — only the top of an iceberg is in a deplorable state the American industry. And the question is in whether will be able to revive the USA the shipbuilding? The number of graduates of the American universities on technical disciplines, engineering specialties, technologies and mathematics sharply lags behind indicators of the main competitors, including China.

The number of the commercial vessels of an ocean class registered in the USA doesn't exceed two hundred from total number in 44 thousand vessels in the world. The USA is among the largest trade powers of the world and annual volumes of export-import transactions exceed one trillion dollars. Nevertheless, the vessels registered there transport only about 1% of cargoes.

Once America was among world leaders of commercial shipbuilding, but today builds less than 10 vessels a year. China annually builds up to one thousand vessels. About 50% of capacities of world shipbuilding fall to the share of the People's Republic of China, it is followed by South Korea and Japan.

The USA also accuses China of monopolization of eco-friendly technologies and products, including accumulators, electric vehicles, solar panels and wind generators. From here reasonings that "excess" industrial capacities of China undermine the outputs in the USA and the countries of Europe.

Though the USA adopted the Law on reduction of inflation and the government went on the way of granting hundreds of billions of dollars for support of information technologies and production of chips within the national territory, at the same time imposing restrictions for sales to China of the hi-tech equipment for production of chips.

"Actually, America heads fight against free trade", - some American economists say. While for the majority of the countries of the world China is the main trade partner, Russia also treats their number.

… also destroy a financial system

China, having taken the place of "factory of the world" and having become the successful exporter, I began to dominate in the world export markets and to accumulate treasury bonds of the USA. In 2011-2012 on accounts of China was to 1.3 trillion dollars of treasury bonds of the USA. By estimates, today China reduced these volumes to 750 billion dollars and continues to reduce participation in financing of the growing American debts.

China possesses less than 3% of all treasury bonds which are in circulation that is the smallest share for the last twenty years, and is significantly lower than record 14% in 2011. The most part of treasury bonds belongs to the American organizations, a considerable part is bought by the Federal Reserve System.

And one of the reasons for which the dollar remains strong is that the American stock market of dews continued to grow in comparison with other markets, including Japan and Europe, and foreign investors willingly invest money in his development. The model of the American economy assumes deindustrialization. The companies from S&P 500 list spend 91% of the profit for increase in share price, but not for investments into research and development.

Trade dedollarization

Moscow and Beijing carried out almost full dedollarization of trade and economic relations, more than 90% of mutual calculations are transferred to national currencies. The Russian foreign minister Sergei Lavrov noted that the Russian-Chinese trade and economic cooperation actively develop, "despite of persistent attempts of the states of the collective West to put a spoke in the wheel, as they say,".

The events of such "class of power" as Putin's visit and negotiations which took place in China influence all world politics, kind of highlighting and baring what was hidden earlier or masked. Or just didn't cause due critical consideration.

Putin and Xi Jinping signed a joint statement on strategic interaction between Russia and China. The volume of the document exceeds 30 pages. 11 documents on economic interaction at the level of departments and regions are signed. But the decision of heads of states on how further to trade in the conditions of the American sanctions became the main achievement, apparently.