Xi Jinping's direct threat to the US, the economic war will deepen

The reason why Xi Jinping is angry is because of the pressure America has started to build around China. Due to this, the condition of China's economy has started to deteriorate. China has recorded a GDP growth rate of only 3 percent in 2022, which is the second worst growth rate in the last 50 years. China has estimated that the GDP growth rate will be 5.5 percent, but the growth rate of 3 percent is almost half of that.

There are rumors of a major economic war between America and China. The Joe Biden government of America is preparing to impose a ban on the investment of American companies in some sectors in China and in this way China is in the process of dealing a big economic blow to China. China's private companies have also been indirectly threatened that this will happen if they do not behave as the Chinese government has said. If you fall at the feet of America or any other country for your own economic benefits, the Chinese government will not leave you. Chinese leader Xi Jinping has called on Chinese private companies to be ready to fight alongside the ruling Communist Party.

Xi Jinping's call has caused a stir. America and China go back and forth between America and China and both attack each other but refrain from naming each other. When China wants to attack America, the western countries or some developed countries say that they hit the sack but do not directly mention the name of America.

This time, Xi Jinping left the shame and directly named America and said that in the last five years, the western countries under the leadership of America have oppressed us in every way and exploited us. Due to this, unprecedented challenges have arisen against our development. To meet these challenges, Chinese private companies will have to side with the Chinese Communist government.

Mentioning that there are going to be restrictions on the investment of American companies in China, Xi Jinping said, seeing that the challenges and dangers facing us are going to increase in the coming time, if the whole country does not stand united, this war cannot be won.

Xi Jinping's harsh words are not new, but until now, Xi has avoided direct attacks on the US. Now suddenly, the reason why Xi Jinping has flared up is because America has started closing in on China. Due to this, the condition of China's economy has started to deteriorate. China has recorded a GDP growth rate of only 3 percent in the year 2022, which is the second worst growth rate in the last 50 years. China has estimated that the GDP growth rate will be 5.5 percent in 2022, but the growth rate is almost half of that of 3 percent.

Worse for China, its exports have started to decline. China's exports have decreased by 9 percent. This trend continues and in the two months of January-February, exports have decreased by 7 percent compared to last year. America is China's largest trading partner. The business between the two is around 600 billion dollars.

China earns by importing huge amount of goods to America. The contribution of exports to America is huge in China's economic progress. America bought goods worth 536 billion dollars from China in 2022, while America's exports to China were only 154 billion dollars. China thus took 382 billion dollars more from America.

Due to this there is great dissatisfaction in America. Since the time of Donald Trump, America has been trying to reduce the trade deficit with China, but it has not been successful. Joe Biden is keen to reduce this deficit by preparing for austerity measures. America now wants to drastically reduce the investment made by American companies in China. America wants to reduce investments mainly in the technology sector. If Biden succeeds, China will get a big blow. Due to this, China cannot even achieve an economic growth rate of 3 percent.

China is more worried that other countries will also reduce their investment due to the reduction in investment by the US. Foreign direct investment of 178 billion dollars in the year 2022 in China. Of this, 65 billion dollars were invested in high-tech industries. 90 percent of the investment in hi-tech industry was from America, Japan, Germany, South Korea and UK.

Japan, Germany, South Korea and UK are four countries that are friends of America. As America withdraws investment in hi-tech industry, Japan, Germany, South Korea and UK also reduce investment. China is more concerned about this. Much of China's income comes from high-tech industries. If the investment decreases, this income will start decreasing and unemployment will start increasing, so China will hit the balance sheet. China's growth in the last four decades will be reversed and its decline will begin.

In order to prevent this situation from happening, Jinping wants to press the nose of the United States by promoting China's private companies, so he indirectly threatened the private companies with himself. Most of the very cheap products found in superstores including Walmart in America come from China. From jeans to jam, everyday necessities come from China. How dependent America is on China can be estimated from the fact that US exports from China are more than three times more than imports. China thus took 382 billion dollars more from America. China's earnings are driven by private companies.

However, if Xi Jinping tries to press America's nose, he may start suffocating himself. Chinese private companies contribute 60 percent to China's GDP. 80 percent of employment in China comes from private companies. If the US stops buying goods from private companies to teach China a lesson, China will suffer. Its GDP also starts decreasing and unemployment starts increasing.

The fight between China and America is a big opportunity for India but India cannot take advantage of it. The reason is that India cannot produce goods as cheaply as China. Because of the communist regime in China, the laborers are forced to work at cheap rates and companies that contribute heavily to exports get facilities including providing raw materials at cheap rates. It is not possible in India so we cannot take advantage of the long-standing Sino-US war.

- China also on the issue of Taiwan

China has warned the US to remain within limits on the Taiwan issue. China's Foreign Minister Qin Gang directly threatened the US and said that the US should stop interfering in the Taiwan issue because no country in the world has the right to interfere in China's internal affairs. Gang said that if the US wants good relations with China, it has to change its approach on the Taiwan issue.

The annual National People's Congress of the ruling Communist Party is underway in China. In this meeting, which is considered to be the most important politically in China, Gang said that a 'red line' has been drawn between the US and China on the Taiwan issue and the US should never make the mistake of crossing it.

China considers Taiwan as its part, but Taiwan's government does not accept this. America publicly admits that Taiwan is a part of China, but China accuses China of internally helping the Taiwan government in its war against China. According to analysts, China has given an open threat to the US that if it does not stop helping Taiwan, it will have to be prepared to suffer bad consequences. The gang has hit back at America by claiming that some countries have a secret agenda behind the Russia-Ukraine war.