US is Disappointed with France's Decision to Join China: End of US Hegem...

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dollarization the Strategic effort to

0:05

reduce Reliance on the United States

0:07

dollar in international trade and

0:09

finance has long been associated with

0:11

brics Nations these countries driven by

0:13

a shared interest in asserting Financial

0:15

sovereignty and mitigating

0:16

vulnerabilities tied to the United

0:18

States dominated Global Financial system

0:20

have actively pursued alternatives to

0:22

the dollar over the past decade bricks

0:25

countries have been at the Forefront of

0:27

dollarization for several reasons now

0:30

dollarization has expanded to Europe led

0:32

by France in this video we explore the

0:35

growing trend of dollarization which is

0:37

now extending beyond the brics Nations

0:39

and gaining traction even among United

0:41

States

0:43

allies before diving into the specifics

0:46

of France's recent move supported by the

0:48

EU let's first examine the evolution of

0:50

trade between the EU and China over the

0:53

years the trade relationship between

0:55

China and the European Union has evolved

0:57

into one of the most significant and

0:59

complex economic Partnerships globally

1:01

characterized by deepening ties

1:03

strategic collaboration and growing

1:06

challenges over the years the

1:08

relationship has undergone various

1:09

phases from formalized cooperation to

1:12

contentious trade disputes reflecting

1:14

both shared interests and Divergent

1:16

priorities historical foundations the

1:19

roots of the China EU trade relationship

1:22

traced back to

1:23

1975 when the European economic

1:26

Community established diplomatic

1:28

relations with China this this Milestone

1:30

laid the groundwork for economic

1:32

engagement culminating in the signing of

1:34

the trade and economic cooperation

1:37

agreement in

1:39

1985 this agreement formalized the

1:41

burgeoning trade relations setting the

1:44

stage for sustained growth in bilateral

1:46

trade China's accession to the World

1:49

Trade Organization in 2001 marked a

1:52

turning point significantly boosting

1:54

trade flows between the EU and China by

1:57

reducing trade barriers and aligning

1:59

with International Trade rules China's

2:01

WTO membership allowed European

2:04

businesses to tap into the Chinese

2:06

market while increasing Chinese exports

2:08

to the EU in 2003 the two entities

2:11

elevated their partnership by

2:12

establishing a comprehensive strategic

2:15

partnership signaling a commitment to

2:17

broad-based

2:20

cooperation over the decades China has

2:23

emerged as a critical trading partner

2:25

for the EU by 2023 China was the eu's

2:29

third largest export destination and its

2:31

largest source of imports the volume of

2:34

goods traded between the two economies

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reached approximately EU 2.3 billion

2:39

daily underscoring the economic

2:41

interdependence key sectors of trade

2:43

include Machinery Vehicles

2:45

pharmaceutical and consumer goods

2:47

reflecting diverse economic

2:49

complementarities however the trade

2:51

relationship is marked by a significant

2:53

structural imbalance the EU consistently

2:55

experiences a trade deficit with China

2:58

which reached nearly EU 400 100 billion

3:00

by

3:01

2023 this disparity highlights the eu's

3:04

heavy Reliance on Chinese Imports

3:06

particularly in electronics textiles and

3:08

Industrial Machinery while facing

3:10

barriers to Market access in

3:13

China the past few years have witnessed

3:16

Rising tensions in the China EU trade

3:18

relationship in 2023 the EU initiated an

3:22

anti-subsidy investigation into Imports

3:24

of Chinese electric vehicles citing

3:26

concerns about unfair competition due to

3:28

State subsidies

3:30

this move aimed at protecting the eu's

3:32

domestic Industries sparked strong

3:34

reactions from Beijing in retaliation

3:36

China launched anti-dumping

3:38

investigations into European exports

3:40

including pork and dairy products in

3:43

2024 these actions have escalated into

3:45

broader trade disputes reflecting

3:47

growing friction over Market practices

3:49

and Regulatory Frameworks in November

3:52

2024 China filed a formal complaint with

3:55

the WTO against the EU challenging the

3:58

blocks tariffs on Chinese EVs and

4:00

accusing the EU of protectionism recent

4:03

years have witnessed a surprising

4:04

development Western Nations historically

4:07

aligned with the US and financial policy

4:09

are now exploring Avenues to reduce

4:11

dollar dependency notably countries like

4:15

France and Germany have taken steps that

4:17

align with dollarization principles in

4:20

March 2023 France's total energies and

4:22

China's China National offshore oil

4:24

Corporation executed China's first un

4:27

settled liquefied natural gas

4:29

transaction via the Shanghai petroleum

4:31

and natural gas exchange this Landmark

4:33

deal involved approximately 65,000 tons

4:36

of LNG imported from the United Arab

4:39

Emirates this transaction signifies a

4:41

strategic shift by French companies

4:43

toward un denominated trade aiming to

4:45

reduce Reliance on the US dollar and

4:47

strengthen economic ties with China the

4:50

move aligns with China's broader

4:52

objective to internationalize the UN and

4:54

challenge the Dollar's dominance in

4:56

global trade following this precedent

4:59

other companies have engaged in un

5:00

settled LNG trades including a deal

5:03

between COK and France's NG in October

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2023 the European Union has expressed

5:09

concerns over the weaponization of the

5:11

US dollar particularly through sanctions

5:14

that impact European businesses such

5:16

measures have prompted discussions

5:18

within the EU about reducing dependence

5:20

on the dollar the Euro's share in global

5:23

foreign exchange reserves declined to

5:25

20% in 2023 its lowest in two decades as

5:29

res Reserve managers favored the US

5:31

dollar and Japanese yen to bolster the

5:33

Euro's International standing the EU has

5:36

implemented measures to enhance its role

5:38

in global Finance these initiatives

5:40

include promoting the Euro's use in

5:42

energy contracts and developing a

5:44

digital Euro to increase its

5:46

attractiveness in international markets

5:48

the European Central Bank emphasizes the

5:50

need for further financial integration

5:52

within the EU to strengthen the Euro's

5:55

Global position Western nations are

5:57

increasingly participating in dll iation

6:00

efforts due to several key

6:04

factors engaging in non-dollar trade

6:07

with major economies like China offer

6:09

significant financial advantages China

6:12

as the world's largest exporter has been

6:14

actively promoting the use of its

6:16

currency the yuan in international trade

6:19

this shift allows Western countries to

6:21

access more favorable trade terms and

6:23

diversify their foreign exchange

6:25

reserves reducing Reliance on the US

6:27

dollar for instance in 2023 China and

6:31

Brazil reached an agreement to conduct

6:33

trade in their own currencies bypassing

6:35

the dollar the growing momentum of

6:37

global dollarization has sparked concern

6:39

from us president-elect Donald Trump who

6:42

has issued a Stern warning to countries

6:44

in the brics block Brazil Russia India

6:47

China and South Africa Trump has

6:49

expressed alarm over the Block's

6:51

discussions on reducing Reliance on the

6:53

US dollar and exploring the creation of

6:55

a new Reserve currency to rival the

6:57

Dollar's dominance in a recent statement

7:00

he threatened to impose sanctions of up

7:02

to 100% on brics Nations actively

7:04

pursuing these Alternatives Trump's

7:07

concerns are rooted in the potential

7:08

economic and geopolitical ramifications

7:10

of such actions the dollar has long been

7:13

the Cornerstone of international trade

7:15

and finance granting the US significant

7:17

leverage in global markets a shift away

7:20

from Dollar hegemony could weaken this

7:22

influence disrupt Financial stability

7:24

and diminish the ability of the US to

7:26

impose effective economic sanctions the

7:29

Dollar's role as the world's primary

7:31

Reserve currency is not just an economic

7:33

Advantage but a strategic asset for the

7:36

United States Trump stated any

7:38

coordinated effort to undermine this

7:40

status will be met with the full weight

7:41

of US economic power including sanctions

7:44

that could reach 100% on trade with

7:46

countries participating in such

7:48

initiatives brics Nations have recently

7:51

accelerated discussions on alternatives

7:53

to the dollar citing the need for

7:55

greater Financial Independence and

7:56

resilience against us monetary policy

7:59

China and Russia in particular have

8:01

spearheaded efforts to trade in their

8:03

National currencies and reduce dollar

8:06

denominated reserves the establishment

8:08

of mechanisms such as the brics

8:10

contingent Reserve Arrangement and

8:12

ongoing talks about a unified currency

8:14

highlight their commitment to

8:16

dollarization Trump's proposed sanctions

8:19

would represent a significant escalation

8:22

potentially affecting a wide range of

8:23

Industries and international trade flows

8:26

however such measures could also provoke

8:28

retaliate actions and further galvanized

8:31

support for dollarization among other

8:34

nations wary of US economic dominance

8:37

analysts note that while the US

8:38

maintains a strong position in global

8:40

Finance the steady growth of alternative

8:43

systems and the increasing economic

8:45

cloud of bricks countries pose a

8:47

credible challenge this is not just a

8:49

theoretical threat said a leading

8:51

Economist if major economies start

8:54

conducting substantial trade outside the

8:56

dollar it could have a ripple effect

8:58

accelerating the decline of dollar

9:00

Primacy As president-elect Trump

9:02

prepares to assume office his

9:04

administration will likely face the

9:06

complex challenge of balancing punitive

9:08

measures with diplomatic efforts to

9:10

maintain the dollar Supremacy the

9:12

International Community meanwhile

9:14

watches closely as the outcome of this

9:16

standoff could reshape the architecture

9:18

of global Finance for decades to

9:22

come let's take a quick pause if you've

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thank you for watching now let's dive

9:38

back

9:41

in diversifying currency usage enables

9:44

Western countries to mitigate exposure

9:46

to us monetary policies and potential

9:48

sanctions the US has historically

9:51

leveraged the Dollar's dominance to

9:52

enforce economic sanctions which can

9:54

have widespread implications by adopting

9:57

alternative currencies Nations can

9:59

maintain greater sovereignty over their

10:01

economic activities the brics Nations

10:04

Brazil Russia India China and South

10:07

Africa have been at the Forefront of

10:09

this movement seeking to reduce

10:11

dependence on the dollar to enhance

10:13

their geopolitical autonomy Global

10:15

Financial Evolution the emergence of a

10:18

multi-polar Global Financial system

10:20

encourages Western countries to consider

10:22

alternatives to a single dominant

10:23

currency the brics block for example has

10:26

explored creating a new Reserve currency

10:28

to challenge the Dollar's hegemony while

10:31

the dollar remains dominant accounting

10:33

for approximately 58% of global foreign

10:36

exchange reserves initiatives by

10:38

emerging economies signal a shift

10:41

towards a more Diversified Financial

10:43

landscape the implications of Western

10:45

involvement the involvement of Western

10:47

nations in dollarization amplifies its

10:50

significance what was once seen as a

10:52

bricks initiative is now a broader

10:54

Global Trend this Evolution could

10:56

accelerate the development of

10:57

alternative Financial systems in

10:59

currencies potentially reshaping global

11:01

trade Norms however the dollar remains

11:04

dominant with over 50% of international

11:07

reserves and global trade still

11:09

denominated in USD the shift is gradual

11:12

but highlights the evolving dynamics of

11:13

global power and

11:17

finance France has increasingly engaged

11:20

in trade transactions denominated in

11:22

Chinese un reflecting a strategic shift

11:24

towards diversifying currency usage in

11:26

international trade and reducing

11:28

reliance on the US dollar in March 2023

11:32

total energies a French Energy company

11:35

completed China's inaugural un settled

11:37

liquefied natural gas trade with the

11:39

China National offshore oil Corporation

11:41

via the Shanghai petroleum and natural

11:44

gas exchange this transaction involved

11:46

approximately 65,000 tons of LNG

11:49

imported from the United Arab Emirates

11:52

during a state visit to China in April

11:54

2023 French president Emanuel macron

11:57

oversaw the signing of a significant an

11:59

agreement between French shipping Giant

12:01

cmacgm and China State ship building

12:04

Corporation the deal valued at 21

12:07

billion un approximately $3.1 billion

12:10

entailed the construction of 16 vessels

12:13

marking the largest ship building order

12:15

placed in China to date in 2023 the

12:18

total trade value between China and

12:20

France reached

12:22

5551 billion yuan 7812 billion

12:27

reflecting a 3.1% year on year increase

12:30

China's imports from France amounted to

12:33

26242 billion un a 10.9% rise compared

12:37

to the previous year in the first

12:39

quarter of 2024 bilateral trade totaled

12:43

12722 billion un

12:46

$17.99 billion from 2019 to 2023 China's

12:52

trade with France grew at an average

12:53

annual rate of

12:55

5.9% in the first quarter of 2024 France

12:58

solidified its position as China's

13:00

leading European Union source of

13:02

agricultural Imports with a total import

13:04

value of 10 billion yen this surge was

13:07

driven by significant increases in Dairy

13:10

pork and wine Imports reflecting China's

13:13

growing demand for highquality French

13:15

agricultural products French exports to

13:17

China reached

13:19

2664 billion in 2023 underscoring the

13:22

robust trade relationship between the

13:24

two Nations concurrently China has

13:27

maintained its role as a vital supplier

13:28

of of consumer goods to France in the

13:31

same period Chinese exports of Home

13:33

Appliances to France grew by 30.6%

13:35

year-on-year while toy exports increased

13:38

by 28% overall China's exports to France

13:41

amounted to $ 49.8 billion in 2022

13:45

highlighting the strong demand for

13:47

Chinese products in the French Market

13:49

these developments underscore the

13:51

deepening economic ties between France

13:53

and China characterized by a balanced

13:56

exchange of agricultural and consumer

13:58

goods the mutual benefits derived from

14:00

this trade relationship contribute to

14:02

the economic growth and diversification

14:04

of both countries however recent trade

14:06

tensions have introduced challenges in

14:09

October 2024 China imposed temporary

14:12

anti-dumping measures on European Brandy

14:14

Imports primarily affecting French conac

14:17

producers this action was in response to

14:19

the eu's decision to apply tariffs on

14:21

Chinese electric vehicles indicating a

14:24

tit fortat escalation in trade disputes

14:26

the French government has criticized

14:28

these measures as political and

14:30

unjustified and plans to challenge them

14:32

at the World Trade Organization despite

14:35

these tensions both Nations continue to

14:37

seek avenues for cooperation in May 2024

14:40

during the China France highlevel

14:42

economic and financial dialogue both

14:44

sides reaffirmed their commitment to

14:46

deepening economic exchanges and

14:48

enhancing trade relations this dialogue

14:51

underscores the importance both

14:52

countries place on maintaining a stable

14:54

and mutually beneficial economic

14:56

partnership

15:00

the adoption of the yuan in bilateral

15:02

trade allows French companies to

15:04

mitigate risks associated with the US

15:06

dollar and reduces exposure to American

15:09

Financial extr territoriality by

15:11

conducting transactions in un French

15:14

firms can buypass US Banks as

15:16

intermediaries facilitating direct

15:18

purchases in China these developments

15:20

align with China's broader strategy to

15:22

internationalize the Yuan and diminish

15:24

Reliance on the US dollar in global

15:26

trade the increasing use of the yuan in

15:29

international transactions could enhance

15:31

the global role of Chinese banking

15:33

institutions and reshape the

15:35

International Financial

15:39

System final words that's all for this

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