“While others rent, China buys …”: Financial analyst warns the real game in China, as you think

For decades, China is known as The World’s Factory, a manufacturing force led by cheap labor and uncompromising exports. But the financial analyst argues that this opinion is old. In a recent LinkedIn post, Hardic Goshi suggests that the true strength of China is not in making products – it is in control of wealth.

While other economies are chasing profits in the short term, China plays a much larger game in the long run.

Joshi refers to the growing fist of China in the world. The American national debt has been 34 trillion dollars in 2023, however China is one of its largest lenders. It also has more than $ 3.2 trillion of foreign exchange reserves, giving it a great influence on global markets. Meanwhile, Chinese banks now control the assets greater than most global economies, which enhances financial power beyond their limits.

“This is not just an economy,” Joshi writes. “It is a financial empire to make it.” He explains that although many still see that China is an economy moved by export, its true strategy is much more calculated.

It not only sells goods, but it is the financing of the entire countries. Countries like Sri Lanka, Pakistan and parts of Africa are now financially dependent on Chinese loans, which makes Beijing not just a commercial partner but a creditor with an impact on their economic decisions.

Unlike Western economies chasing quarterly profits, China plans in 50 -year courses. It has controlled more than 70 % of the world’s rare ground minerals, ensuring dominance of future industries such as EVS and semiiconductors.

In infrastructure, China buys instead of renting it, and eating ports, railways and communications networks quietly throughout Europe, Africa and Asia.

“The world continues to talk about China’s factories, but the real story is China’s financial strategy,” says Gochi. While most countries interact with economic transformations, China invests, accumulates and dominates.

The question that Joshi asks is whether the other countries are very dispersed because of the wrong game to find out what is already happening.