The world situation is unpredictable, and Sino-American relations are even more the focus of attention.

This dispute without smoke, initially a trade friction, gradually expanded to the fields of technology and finance. And the Federal Reserve's announcement of interest rate cuts, seemingly calm on the surface, actually ushered Sino-American financial competition into a new stage.

On the surface, the United States is trying to repeat old tricks by manipulating the trend of the dollar, triggering a "financial tsunami" that swept the world to alleviate its own economic difficulties.

Now it's different, scriptwriting is no longer the world of the United States.

This time, China is not only not a lamb to be slaughtered, but has become an indispensable force in this game with its strong economic resilience and strategic determination.

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Yellen's visit to China is more like a signal that the United States has to lower its posture and seek cooperation after realizing its own difficulties.

Debt crisis

Looking back over the past few years, the game between China and the United States has long transcended pure trade friction and evolved into an all-round contest.

From the earliest trade war, to later technological restrictions, and now financial confrontation, the two sides do not yield, and every move aims at the other's vital points.

The United States, once a hegemon, now hopes to maintain its declining influence through sanctions.China is no longer the country that can be bullied at will. In the face of continuous pressure from the United States, China responds calmly, fights back resolutely, and guards its core interests.

The recent interest rate cut by the Federal Reserve is clearly an attempt by the United States to manipulate the flow of the dollar to gain wealth globally once again.

The global economic landscape has undergone significant changes, with emerging economies gradually emerging, and the era of American dominance has passed.

The rate cut not only failed to achieve the expected effect but also triggered capital outflow, further plunging the United States into a debt quagmire from which it is difficult to extricate itself.

Yellen's visit to China seems more like a signal that the United States, realizing its own predicament, has no choice but to lower its stance and seek cooperation with China. In the current international situation, cooperation between China and the United States can benefit both parties, while confrontation will only lead to mutual harm.

The Federal Reserve's interest rate cut may lead to capital outflow from the United States. When interest rates fall, investors may look for other markets with higher returns, thereby transferring funds abroad. This will affect the capital flow and financial markets in the United States.

At the end of September, Federal Reserve Chairman Powell officially announced a 50 basis point rate cut, which instantly ignited the global financial market.

From the outside world's perspective, this move by the Federal Reserve is undoubtedly a signal of easing, attempting to stimulate exports and alleviate domestic inflationary pressure through the devaluation of the dollar.

However, behind this seemingly ordinary operation, there is actually a hidden difficulty for the United States.For a long time, the United States has relied on the strong position of the US dollar to freely acquire wealth globally, while transferring its own economic problems to other countries.

However, with the multipolar development of the world economic pattern and the imbalance of the US economic structure itself, the hegemonic status of the US dollar has long been precarious.

The recent interest rate cut by the Federal Reserve seems more like a measure the United States has to take to deal with its own economic problems.

But contrary to expectations, the rate cut did not achieve the desired effect, but instead triggered capital outflows, with a large amount of funds withdrawing from the US market and flowing to countries and regions with greater investment value and growth potential.

Compared with the United States, China's economy appears more resilient and vibrant. The People's Bank of China and the Ministry of Finance quickly took action and introduced a series of measures to support the secondary market, adding confidence and vitality to the market.

These policy measures are like a strong stimulant, quickly activating China's capital market.

Recently, a lot of funds have flowed into the Chinese stock market, driving the stock market to rebound rapidly, with trading volume also significantly increasing, and market confidence greatly enhanced.

More and more international investors are beginning to realize that the growth potential and investment opportunities of China's economy are far beyond the US market.

The vitality and growth potential of China's economy, as well as the risk-aversion attributes of Chinese assets, have attracted the favor of many investment institutions.

In sharp contrast, the US economy is sluggish, with high inflation and increasingly severe debt problems, and the attractiveness of US dollar assets continues to decline.As the global economic growth slows down and investors become more cautious, an increasing number of people are beginning to reevaluate the potential of Chinese assets. In fact, it has long been internationally recognized that China's economy is both resilient and full of potential. In recent years, although China's economic growth has slowed somewhat, it has remained quite stable, far exceeding the global average.

What's more important is that China's economic structure is becoming increasingly optimized, with new drivers developing rapidly and high-quality development achieving significant results.

So, the U.S. debt issue: Will it be the last straw that breaks the camel's back for the economy?

Mounting Debt

The United States, once the world's economic leader, is now mired in debt issues and finds it difficult to extricate itself. The U.S. national debt is nearing its annual GDP and continues to grow rapidly. What's more worrying is that the credit rating of U.S. debt is constantly being downgraded, and investors are increasingly lacking confidence in its debt repayment capabilities. U.S. debt, once considered a safe investment, is now becoming something no one wants to take on.

The causes of the U.S. debt crisis are multifaceted, but ultimately, it is the result of an imbalance in the U.S. economic structure, over-reliance on financial capital, and the long-term pursuit of hegemonism and unilateralism. For a long time, the United States has relied on the dollar's hegemony, printing money at will, shifting crises, and overdrawing global confidence in the U.S. dollar.With the diversified development of the global economy and the rise of emerging economies, the dominant position of the US dollar is gradually diminishing.

At the same time, the polarization of American domestic politics, social division, and escalating racial conflicts are severely constraining the healthy development of the US economy.

Faced with the increasingly severe debt crisis, the US government is at a loss and can only keep raising the debt ceiling, which is akin to drinking poison to quench thirst.

This approach is like robbing Peter to pay Paul, and the problems will only accumulate more and more.

If the US government fails to face its own issues and take effective measures to resolve the debt crisis, then the US economy will face the risk of collapse, which will inevitably have catastrophic consequences for the global economy.

How should China respond?

In the face of continuous pressure from the US, China needs to remain calm and resolute, firmly defending its core interests and development space.

It is essential to maintain strategic composure, adhere to an independent and peaceful foreign policy, and not be influenced by American hegemonism and unilateralism, steadfastly pursuing a path of peaceful development.

We must accelerate the formation of a new model that is primarily based on domestic circulation, supported by both domestic and international dual circulation, enhancing the economy's resilience and risk resistance, and reducing dependence on foreign markets and technology.

Furthermore, we need to strengthen technological innovation and industrial upgrading, break through the US's technological blockade and decoupling of industrial chains, and gain more control over core technologies and key areas.Finally, it is essential to strengthen solidarity and cooperation with other developing countries to jointly safeguard our common interests and promote the establishment of a fairer and more rational new international political and economic order.

The future relationship between China and the United States, whether it will lead to cooperation or confrontation, has become a focal point of concern for many. The relationship between the two sides is complex and changeable, with the potential for both collaboration and friction.

Whether the future leads to a win-win cooperation or a path of confrontation depends on how both parties address existing issues and differences. It is hoped that both sides can engage in more communication and understanding to find a path of mutual benefit.