If China destroys the United States, the United States will also destroy China!

If China destroys the United States, the United States will also destroy China! Author: CNN Reporter American Overseas Television "China is destroying the United States, the United States...

If China destroys the United States, the United States will also destroy China! Author: CNN reporter American Overseas Television "If China destroys the United States, the United States will also destroy China." This is the view of CNN reporter Zakaria in a recent comment. During his visit to the United States in September 2010, Chinese Premier Wen Jiabao accepted an exclusive interview with CNN reporter Fareed Zakaria. The latter recently wrote another article criticizing the Chinese media's comments on the downgrade of the United States' credit rating, saying that China has not given the United States favors. On the contrary, China actually needs the United States. Zakaria said he was surprised by China's response to the downgrade of the U.S. credit rating in the past few weeks. Chinese state media loudly declared that the United States needed to cure its debt ailment. A Hong Kong media headline publicly used the headline "The American Dream is Over," claiming that Washington owes every Chinese citizen 5,700 yuan, equivalent to US$900. Some Chinese analysts believe that Washington's solution to its debt problem has only extended the fuse of this time bomb by an inch. Zakaria said that such comments shocked the nerves of the Chinese people. After the Shanghai stock market fell, Chinese bloggers flocked to social platforms to question why the United States suffered a downgrade and China became the biggest victim. Others say that using Chinese taxpayers' money to buy U.S. bonds is a huge mistake. China must hold assets that can be held responsibly. The article stated that in the United States, many people can also be heard worried that the Chinese government may stop buying U.S. Treasury bonds. Zakaria said he believed those concerns were overblown. Because the current economic situation between the United States and China is like the nuclear deterrence doctrine during the Cold War, that is, "If you destroy me, I will destroy you." For example, Zakaria said that China is indeed the largest debt holder in the United States, with about 1.2 trillion US dollars in national debt, which is more than Japan, the United Kingdom and Brazil. But what few people understand is that most of the U.S. debt is still owned by Americans in Social Security trusts, pension capital, and the Federal Reserve System. However, China is still very important as a marginal buyer. Some people imagine that China will sell off the 1.2 trillion U.S. Treasury bonds at a low price, but this is just a huge conjecture. If China really starts to sell off, there will be a series of catastrophic chain reactions. If China does this, it will trigger panic selling of the U.S. dollar, which will definitely hurt the U.S. economy, and the U.S. is China's largest export market. Moreover, this is not good news for the Beijing government, which hopes to place workers in foreign-owned factories across China. Zakaria said China prefers an export-oriented growth strategy, which requires it to keep commodity prices low, which means it must keep its currency undervalued, which is why China buys U.S. dollars. Can China stop or slow down its purchases of U.S. debt? Yes, of course. But even so, China has fewer choices than people expect. As China's exports continue to grow, it must increase its foreign exchange reserves. How will the money be stored? Does China want to invest in Japanese debt or make the yen its reserve currency? Anyone who can understand the deep hatred between China and Japan knows that this will be impossible. Euro-dominated assets may be possible, but does China really want to put money into the eurozone, a market where the future of the currency looks more volatile than ever? China may be able to buy pounds or Swiss francs, but never in large quantities. In fact, if China stopped buying U.S. Treasuries, the value of the yuan would rise, China's exports would become more expensive, and China's employment rate would decline. So, just as the Chinese media is criticizing the U.S. government's policies, what will the Beijing government do? It is expected to continue buying U.S. bonds. China has entered a circle of buying U.S. bonds, and no matter what any ratings agency decides, no other bond market is as big or as safe as the U.S. market. Therefore, Zakaria said, ignore all theories that China is giving the United States a huge favor, because China actually has nowhere to go. From this perspective, the United States is probably giving China a favor.