Transcription
That the USChina trade war is over. She chooses this very moment to announce to the world, you know what? The US just told me I shouldn't buy more uh energy from Russia. Here's what I'm going to do. I'm going to build a pipeline to buy three times as much. Then what's happened in the past 3 weeks is that essentially China's already won that race.
>> In this interesting video, economist Louis Vincent Gov explains how China has actually won the trade war. His insights are absolutely brilliant and will surely open your mind. Watch this video now. >>
Um, look, I think what's happened in the recent weeks to me it's it's so obvious. I've written it out, etc. The the US China trade war is over. Uh, the US has essentially said, okay, you know, following the imposition of the uh the rare earth thing, following the Geneva deal, they they they've backed down. Look at what's happened in the past few weeks. Uh the past few weeks have been absolutely momentous. A month ago, you have the US saying, "Anybody who buys energy from Russia, we're going to punish. We're going to put in more tariffs. We're going to it's going to be terrible for them." So the US sends out this message. 10 days later, you have She Putin and Modi who meet in Shanghai, and they're literally French kissing on stage. The the three of them. uh they're they're like acting like they're the best buddies that have ever existed.
Um now just that by the way is super important because let's discuss for a second what's the big macro trend the big mega trend of the future that will change the the the world. When I'm in the US all people want to talk about is AI sure you know it's exciting etc. When I'm in Europe all people want to talk about is how welfare states are about to collapse because you know fiscal spending is out of control etc. And so you can you got to buy gold and you got to buy bitcoin and you know we're coming to the end of the welfare states and and you know that's that's perhaps a big macro trend sitting in Asia. If you take a step back you think okay today we have Russia the biggest producer of cheapest commodities in the world. You have China, the biggest provider of capital goods, the biggest provider of capital now to other emerging markets because they have the cheapest cost of capital in the world and the biggest producer of consumer goods. And then you have India which is the biggest provider of cheap labor. And now those three leaders are saying we're going to put these three things together, mix it in a pot and see what comes out as a stew. cheapest commodities, cheapest capital goods, cheapest cost of capital, cheapest uh consumer goods, cheapest cost of labor. It's going to be a boom of epic proportion that comes out of this. A boom of absolutely epic proportion.
Now, you take your 30 biggest market caps in the world. 24 out of the 30 are American companies. Two out of the 30 are Chinese companies, 10-centent and Alibaba. Um, one of them is Korean Samsung, one of them is Saudi Aramco, one of them is Japanese Toyota. But essentially, so here here are your 30. Now, how many of these 30s are going to participate in this boom? If the big macro trend of the next 10 years is the economic integration of China, India, and Russia, the answer is Alibaba is definitely a way to play it. 10-centent is perhaps a way to play it, but in your top 30 market caps, there aren't a ton. So I think that the the reason these stocks are ripping is is that picture in Shanghai and then I'll go one step further really showing you that the US China tensions are over.
So the US again threatens everybody with sanctions if they deal with Russia. For the past 15 years, Putin has been lobbying China to build a power of Siberia 2 pipeline. and she chooses this very moment to announce to the world, you know what, the US just told me I shouldn't buy more uh energy from Russia. Here's what I'm going to do. I'm going to build a pipeline to buy three times as much. Um, it's almost like he said, suck on that. Excuse my French, but it's like, talk about defying a direct US order. Now, you could say again it's hubris. You could say the U China's cruising for bruising or it's just they feel pretty confident that things with the US are on an even keel that the ability of the US to punish China is now limited. Um and so now all the gas that used to go to Europe is now going to go to China for a fraction of the price priced in Redmond B. And so now you know that for the next 30 years, China, a country that already produces twice as much electricity as the US, will now have the cheapest cost of energy in the world, which is a huge shift and will pay for energy in its own currency. For the past 15 years, one of the big drivers of US growth was that the US had the cheapest cost of energy in the world thanks to the shell revolution. This has just shifted. China is now the the one that's going to have the cheapest cost of energy.
So if you're a big believer in AI, if you think forget this China, Russia, India, economic integration, who cares, whatever, you know, these guys are hicks. Uh I I don't I don't care. If you think AI is where it's at, then the question becomes, do you think the constraint in AI is going to be a access to computing power or do you think uh the constraint in AI is going to be access to cheap energy? Now, if you think constraint in AI is access to computing power, then you buy Nvidia and you buy the US. If you think constraint in AI is going to be access to cheap energy, then what's happened in the past 3 weeks is that essentially China's already won that race. And I I tend to believe that actually it is going to be constrained to to cheap energy and that you know getting access to cheap energy requires 10 years of investments 15 years of investments and and China is now already ahead in that race because again they produce twice as much electricity as the US and electricity in China is already much cheaper than the US.
>> The US China trade war has long been a hot topic but recent events have made it clear the trade war is over and China has come out on top. According to Louis Vincent Gave, a well-known economist, the narrative has shifted. While both the Trump and Biden administrations imposed tariffs and export controls on China, China largely refrained from retaliating. However, when former President Trump imposed tariffs on the entire world in April, China was the only nation to respond. This move was not a mere reaction. It was a sign that China had been preparing for this moment. Unlike in previous years, China no longer sits idly by as the West imposes its agenda. Instead, it's stepping up as a global leader, confidently showing the world its strength. One of the most striking moments came just a few weeks ago at the Shanghai Cooperation Organization Summit in China. The leaders of China, Russia, and India gathered in Shanghai, signaling a significant shift in global dynamics. As President Xiinping shared a friendly and strategic handshake with Russian President Vladimir Putin and Indian Prime Minister Narendra Modi, the message was loud and clear. China is now at the helm of the world's developing nations. In contrast, the US, long regarded as the world's primary power, stood on the sidelines. This moment where China took the lead in the international conversation was a clear reminder that Beijing is not just a regional power anymore but a global force to be reckoned with. The West led by the US has continuously used economic sanctions and trade tariffs as tools to exert its dominance. For years, the US and its allies have pressured countries to align with their political and economic agendas. But this strategy is starting to backfire. Countries around the world are realizing that relying on the US for trade and political influence has its limitations, especially as the US has been increasingly unwilling to play fair. China, on the other hand, has been quietly positioning itself as a more reliable partner. While the US focuses on sanctions and tariffs, China is busy building new alliances and strengthening its economic ties with nations across the globe. Take the Belt and Road Initiative as a prime example. This massive infrastructure project spans over 140 countries and is designed to connect China to the rest of the world through trade routes, investments, and development projects. By offering alternatives to westernled financial systems and promoting trade partnerships with developing nations, China has created a new economic landscape, one that bypasses the old outdated system of Western dominance. In contrast, the US has been increasingly isolated as other nations are realizing that China is offering real tangible support rather than the political and economic pressure they often face from Washington. Furthermore, China's approach to international diplomacy has been notably different from the West's. While the US has often relied on its military and economic might to influence global affairs, China has taken a more subtle strategic approach. In the last few years, China has used economic partnerships, soft power, and infrastructure development to position itself as a champion of the developing world. This strategy has gained significant traction, particularly in Asia, Africa, and Latin America. By focusing on mutually beneficial relationships rather than coercion, China has built stronger, more lasting alliances. The summit in Shanghai was not just about the political leaders shaking hands. It was a clear message to the world that China, Russia, and India are now the new power block. These nations are working together to reshape global trade and they are not waiting for the US to decide what the future will look like. By positioning itself as the leader of this block, China has effectively demonstrated that it is the driving force behind the changes sweeping the world stage. In conclusion, the US China trade war is a thing of the past and China has emerged victorious through smart strategy, economic partnerships, and diplomatic alliances, China has shown the world that it is no longer just a rising power. It is the power to watch. While the US continues to impose tariffs and sanctions, China continues to lead. The future of global politics and economics is shifting and China is firmly in the driver's seat. So, what do you think? Share your thoughts and leave your comments below. If you like what you watched, hit the like button and most importantly, don't forget to subscribe to our channel for more interesting videos.