China and the United States are fighting against each other, and the AIIB is behind them.

China and the United States are fighting against the Asian Infrastructure Investment Bank. (Author of this article: Huang Sheng) The United Kingdom announced that it would join the Asian Infrastructure Investment Bank, and Germany, France, and Italy followed suit, which shocked the United States for a while...

(Author of this article: Huang Sheng) The United Kingdom announced that it would join the Asian Infrastructure Investment Bank, and Germany, France, and Italy followed suit, which shocked the United States. The United States, Japan, and Singapore tried every means to obstruct it. Why? The AIIB has now become the focus of competition among major powers.

1. The China-led AIIB will be an important financial institution for China’s capital export. Behind this, if China's four trillion foreign exchange reserves are significantly reduced in the future to purchase U.S. Treasury bonds and are instead used for lending, it will undoubtedly have an important impact on the United States' existing dollar reflux mechanism, because China is the United States' largest trade surplus country. The reason why the United States dares to maintain such a large deficit is because China will continue to invest the surplus it earns in the United States by purchasing U.S. Treasury bonds.

If this fundamental model is affected by the AIIB and invests not in the United States but in large-scale infrastructure projects in Asia, then the United States will need to redesign its monetary path, which will greatly affect U.S. economic growth and the withdrawal of QE, which will be a major blow to the existing economic model of the United States.

2. Once the AIIB starts investing in large-scale infrastructure projects in Asia, the loans provided to other Asian countries may not only be US dollars and other foreign exchange, but also RMB loans, which will greatly accelerate the pace of RMB internationalization. The success of RMB internationalization will allow these countries to import Chinese equipment through RMB. This will greatly weaken the status of the US dollar and the Japanese yen in Asia. This is why the United States and Japan are very anxious.

3. Why do the United Kingdom, Germany, and France want to join the AIIB? It’s nothing more than interests. London, UK, has always wanted to become an international offshore center for RMB; then why do Germany and France want to join? Germany and France are both major export and manufacturing countries. Once they join the AIIB, the AIIB will give priority to purchasing equipment from member countries for large-scale infrastructure projects invested and constructed by the AIIB. This is a big business with a scale of more than 10 trillion yuan, including Airbus aircraft, Siemens machinery, etc., there are too many.

4. Why do the United Kingdom, Germany, and France dare to disobey the United States and join the AIIB? The U.S. is about to raise interest rates, and the U.S. dollar is returning in large quantities. The European economy is in poor condition and has to continue quantitative easing and money printing. The U.S. is now bringing deflation to Europe, and the U.S. does not consider the current situation in Europe at all. Even IMF President Lagarde warned that U.S. interest rate hikes may lead to a major financial disaster. Is this speaking on behalf of Europe? Is it useful? No, should the United States raise interest rates or raise interest rates? Since there is no benefit to be gained from the United States, why reject the huge benefits of the AIIB? Politicians are not stupid when it comes to interests.

5. The United States and Japan will definitely obstruct and retaliate against China. The AIIB is a symbol representing China's capital export and the internationalization of the RMB, which poses a challenge to the traditional powers of the World Bank and Asian Development Bank controlled by the United States and Japan. At the same time, any currency that challenges the US dollar has been severely hit by the United States, and the RMB will certainly be no exception.

The Asian Infrastructure Investment Bank shoulders the competition between China, the United States and Japan in Asia, and shoulders the heavy responsibility of the internationalization of the RMB. However, there are dangers and dangers, and war may even break out. The war in Myanmar and the obstruction of China's large-scale construction projects abroad are all evidence of this, and there will be more and more such things. AIIB, go well, RMB, go well!