This day came earlier than I'd expect. Sanctions on Russia appears to have sped up the course. Overall, the so called PetroYuan still has long long way to catch up with the PetroDollar even if China keeps importing more crude than the US in years to come. Because for the emirs the need for security by the west will only increase. The price tags for such security are in USD.
American Economics Thread
- Thread starter Bernard
- Start date
antiterror13
Brigadier
but OPEX still use US$ as the currency for oil .. or basically all but Russia
AssassinsMace
Lieutenant General
I read a while ago that if the US didn't have all its trade barriers that scrutinize China from buying US under its dual-use ban, it would be worth at least a couple hundred billion dollars a year for the US. Just look at Obama's ban on computer processors in order to prevent China from making supercomputers. It killed 13,000 jobs at Intel and they basically lost a big customer permanently since China is on its way to developing domestic industries as a result of the barriers in general.
One could call it reverse protectionism in action so to speak, in the sense that the bans served to stimulate Chinese domestic industry as opposed to China using tariffs to block foreign importation.
AssassinsMace
Lieutenant General
Exactly and that's why they spin. They say China doesn't buy American. No, the US prevents China from buying American. It's just like all those US corporations outsourcing their products to be made in another country. The US counts those as a product of those countries when they're exported to the US despite they're owned by US and other foreign corporations who make all the money when sold to consumers. Over 60% of China's exports to the US fall into that category. Yet they spin it as a trade imbalance in China's favor.
antiterror13
Brigadier
and instead China buy a lot of high tech machinary and other high tech product from Japan and Germany ... the US is basically losing it
SamuraiBlue
Captain
Basically what you call petrodollar is any and all oil that is being transacted at either the International Petroleum Exchange located in London and New York Mercantile Exchange the two largest oil bourse only accepts US dollar for transaction. So it's not just OPEC nations.
Russia and Iran also operates oil bourse within their own nation which accepts various currency for transaction.
US President Trump appears to be changing his stance recently with his polite & diplomatic phone call made to President Xi of China. All of us hope that Trump Administration's recent sensible approaches will continue. However, wise to continue keeping track on his economic, trade & security issues, as sudden unpredictable changes could happen again. Let's be realistic observers. Sun Tzu 500 BC "Know yourself know your enemies (this presently pertains to adversaries/trade-business competitors), 100 Battles 100 Victories".
Hmm, the Chinese Ministry of Commerce says 126 billions in 2016 and it's a 4.1% increase from a year before. This number is said of 实际使用外资金额, literally means "amount of foreign investment actually used" (emphasize mine). I guess it does not include the amount from letter of interests, amount that stll sit in bank accounts, etc.