‘While others rent, China buys…’: Financial analyst warns China’s real game isn’t what you think

For decades, China has been known as a world factory, a production power plant, which is guided by cheap labor and relentless exports. But the financial analyst claims that this view is outdated. Recently, Hardik Joshi recently suggests that China’s real power is not in making products. It is in control of wealth.

While other economies pursue short-term profit, China is playing a much bigger, long-term game.

Joshi points to China’s growing financial handle on the world. The US national debt crossed $ 34 trillion in 2023, but China remains one of its largest lenders. It also has more than $ 3.2 trillion in foreign exchange reserves, which gives significant leverage to world markets. Meanwhile, Chinese banks now control the assets greater than most of the world economies, uniting the financial capacity much more than its borders.

“This is not just an economy,” Josh writes. “It’s a financial empire.” He explains that before many, China still sees an export-based economy, its real strategy is much more calculated.

It does not only sell products. It finances all peoples. Countries like Pakistani, Pakistan and Africa are now financially dependent on Chinese loans, making Beijing not only a commercial partner, but also under the influence of the creditor.

Unlike Western economies, which pursues quarterly profit, China is planning 50 years of cycles. It provides more than 70% of the rare land minerals in the world, providing the priority of the future industry like EVS and semiconductors.

In the infrastructure, China goes rather than leasing, taking the ownership of ports, railways and telecommunications networks in Europe, Africa and Asia.

“The world continues to talk about China factories,” says Josh. “But the real story is China’s financial strategy.” Before most nations react to economic changes, China is investing, accumulates and dominates.

The question, Joshi asks if other nations are very deviated from the wrong game to see what is really going on.