China is now the largest creditor of the United States. China holds more than 1 trillion U.S. dollars in U.S. treasury bonds. Once the RMB appreciates, the United States will reduce its foreign debt in a disguised manner, causing the Chinese people to bleed and sweat every day. Money turned into Yankee bills.

The actual gold content of foreign exchange reserves has dropped directly, and the money owed to China by various countries has actually decreased. The biggest beneficiary is the United States

This has made it difficult for China to export goods, and the export volume will also decrease. On the contrary, foreign goods can easily enter our country, causing our country's economy to flow into foreign countries. Appreciation of the RMB may not be a good thing. The reality is that the RMB has appreciated, but prices have also risen, offsetting the benefits brought by the appreciation. In the general environment of economic growth, the people have not enjoyed the benefits brought by the appreciation of the renminbi. Take the Japanese yen as an example: The burden brought by the appreciation of the yen to the Japanese economy can be reflected in the following points:

< p> First of all, the appreciation of the yen has comprehensively raised the cost and price of Japanese products. Japanese products that once dominated the world market for their high quality and low price have suddenly become "nobles" in the commodity world. Although the appreciation of the yen has little impact on the export of irreplaceable products, after all, a considerable part of Japan's export products are replaceable. The appreciation of the yen will suppress the international market demand for such products, thus causing a blow to companies that produce such products. This blow will also spread to other industries through the industrial chain, and may even completely inhibit Japan's economic growth. This is the "yen appreciation depression" that the Japanese government is worried about.

Second, the appreciation of the yen reduces Japan’s import prices. Although this allows Japan, which is short of resources, to exchange for the resources it needs with less expenditure, cheap foreign manufactured products also flood into Japan at the same time, impacting Japan's original industrial structure. Those most affected are labor-intensive industries with low technical content but important for maintaining employment.

Third, the substantial appreciation of the yen has aroused the interest of international speculative capital, making the yen a target of speculation by speculative capital. Since then, the yen exchange rate has fluctuated greatly and the Japanese stock market has been turbulent, all of which have been caused by international speculative capital. This has brought new instability factors to the Japanese economy. The potential benefits of RMB appreciation: It is beneficial to the repayment of foreign debt and import trade, to curbing inflation and China's overseas investment, and it is beneficial to the RMB's move towards a regional currency and an international currency. But the appreciation of the RMB will bring more disadvantages to the Chinese economy. First, it weakens the competitiveness of Chinese products in the international market. Chinese goods have entered the world market with "cheap and high quality". The appreciation of the RMB will inevitably affect the export of Chinese products and their competitiveness in the international market. Second, the number of foreign companies investing in China will decrease. China's development experience proves that a lack of foreign investment, or a sharp decline in foreign investment, will be very detrimental to China's sustainable development. Although the appreciation of the RMB is beneficial to foreign entrepreneurs who have invested in China or have funds in China, because their assets will increase in value, it will deter entrepreneurs who are about to invest in China. Therefore, it will be detrimental to China's economic development in the long run. Third, it is detrimental to the development of China’s domestic tourism industry. Once the RMB appreciates significantly, it will have a negative impact on the development of China's domestic tourism industry. Of course, the appreciation of the RMB will also encourage Chinese people to travel abroad, but the resulting loss of foreign exchange will also be detrimental to China. Fourth, China’s huge foreign exchange reserves will shrink significantly. China's foreign exchange reserves are as high as US$3 trillion, ranking first in the world. China's foreign exchange reserves are mainly in U.S. dollars. As long as the RMB appreciates, a large amount of U.S. dollar reserves will shrink. Fifth, China’s economy may spiral out of control. Maintaining a stable currency exchange rate is very important for the sustainable development of a country's economy. China's financial and monetary system is still very imperfect. Once the currency exchange rate is significantly adjusted, the possibility of losing control is very high. Japan is a good reference. Since the bubble economy burst in 1991, the Japanese economy has been unable to recover due to the major adjustment of the yen exchange rate. The value of a currency depends on its purchasing power parity. The purchasing power of the RMB is actually declining, that is to say, the RMB is actually depreciating domestically! This is unique in the world. Due to the external appreciation of the RMB, our foreign exchange reserves are bearing the cost of losing one aircraft carrier every three months. In other words, we are all working for the United States. Originally, the appreciation of the RMB was a good thing for my country's consumers and economic development, but the appreciation of the RMB was mixed with too many American factors. The United States has repeatedly asked us to raise the RMB exchange rate for two main purposes. First, every time our RMB increases by one percentage point, our more than 3 trillion U.S. dollars in foreign exchange and more than 1 trillion U.S. Treasury bonds will shrink by tens of billions of dollars. Second, our country's exports will reduce profits, thereby reducing exports to the United States.

Now our country is kidnapped by the US dollar, which cannot rise or sell. If it sells U.S. Treasury bonds, it will obviously be a double-edged sword for China, hurting both others and itself. China's massive dumping of U.S. dollar assets and U.S. Treasury bonds will exacerbate the weakness of the U.S. dollar, which will eventually force the Federal Reserve to raise interest rates and bring the U.S. economic recovery to naught. However, the United States is likely to significantly increase import tariffs on Chinese goods, preventing Chinese goods from entering the United States. This will cause great harm to the Chinese economy, because the United States is China's largest export market, and China has not yet been able to find a substitute for the United States. market. Once exports are blocked, Chinese companies close down and workers lose their jobs, economic problems will evolve into political problems.

Therefore, selling off the financial nuclear bomb of U.S. Treasury bonds is tantamount to mutual destruction, and should not be done unless it is absolutely necessary. The United States takes advantage of China's weakness to force the RMB to appreciate.