Geopolitics has been a headache since ancient times, especially today's relationship with the United States, which is simply a big deal on everyone's mind. Whether it is a large enterprise or a small business, it is closely related to geopolitics, and it is simply necessary to look at the topographic map to talk about business, which makes people addicted.
Liu, after investing in the past 30 years, the most he has seen is geopolitics. Nowadays, even small businesses have to put on the face of geopolitical treasures, which is really unexpected. Geopolitics is a surprising development involving not only relations with the United States, but also relations with China throughout the Middle East.
It was recently announced that Abu Dhabi's second-largest sovereign fund has opened a representative office in Beijing, and the number of staff will increase from the current 10 to 60. You say, why is that? It turned out that Middle Eastern countries were a little uneasy about their funds in the United States or Switzerland, so they began to transfer funds to China. In Kuwait, for example, investment in China has increased by $53 billion in the past three years, and Saudi officials have come in seven full ministers, one deputy minister, and the minister of industry in the past two and a half months.
So, even if the United States and China decouple, we have other partners, such as Brazil, South America, and ASEAN. ASEAN's economic development is tied to China, and it has become part of China's supply chain. Saudi Arabia has also recently built four new industrial parks to learn from China's investment attraction, hoping that China's manufacturing industry will also develop. These are the processes in which some developing countries have good relations with China and quickly link up with China's economy.
From a macro point of view, although China's economy has some problems now, its foundation is still quite deep. China has the world's unique advantage, with the most modern supply chain, the most modern infrastructure, and the most hardworking people. We have more engineers and scientists in China than we can count. Therefore, our confidence is quite sufficient. Of course, in the global environment, the United States suppressed, Europe declined, the latest data show that the situation in Europe is very bad, and the problem of deindustrialization is becoming more and more serious. How can there be international competitiveness when the deindustrialization of Europe has led to several times the price of energy and a sharp increase in the price of raw materials? Therefore, life in Europe is getting tougher, and it is up to Russia and Ukraine to decide when this situation can end. There is nothing I can do about it, Europe is still a priority in politics. If we look at geopolitics a little more comprehensively, for Chinese companies, the Middle East, ASEAN, Central Asia, Central Asia is now basically out of Russia's control, so there is also a lot of potential to develop there, and then to North Africa, from North Africa to other parts of Africa, these are potential partners who can cooperate with China to flourish.
The problem of the weakening of the renminbi may not only be related to the renminbi itself, but also to the dollar. The dollar is very strong now, and I don't think it's for nothing. By IMF standards, the United States is already bankrupt, so why is the dollar so strong? Why does it influence the exchange rates of other currencies? This question does make it a bit questionable. With the addition of the new BRICS members, China and partners such as Iran, Saudi Arabia, the United Arab Emirates and Russia, which account for 60% of global oil exports, have all agreed to settle in their local currencies. Then the next thing is that the petrodollar will gradually decline. So, I think in the long run, the renminbi will go very strong, and in the medium term, it may be a low point now.
It is not a matter of days or two that the United States and Europe have sung about China, but China has not collapsed since 25 years ago. Now Europe and the United States feel that our economic growth is slow, so they take the opportunity to pour cold water on our heads, which is really a clear strategic goal of the United States. But no other economy in the world can match China's. The deindustrialization of the United States is almost the same, and those friends of TSMC are now miserable, because the matter of setting up factories in the United States is really troublesome. The problem of deindustrialization in the United States has reached the extreme, just as Germany is now following the same path. The economic structure of China and the United States is completely different, and there is no point in direct comparison. Therefore, I believe that China will not collapse easily.
"Singing about China, no matter how happy you sing, you can't stop China's prosperity." This is a famous phrase once said by the great poet Du Fu, and I think it is very appropriate. If some people sing about China, we will firmly follow our own path, develop our own economy, believe in China's potential and heritage, and believe in China's future, which is the right way. What do you think, friends? Hurry up and comment!