0:00 One move of Donald Trump can destroy China. And that move is to make Yuan strong. With this, the world will start trading with Yuan. Dollar's dominance will be reduced. And then China will also become a superpower. And will be destroyed. What nonsense is this? If China's currency Yuan becomes strong, then how will China be destroyed? People think that Trump has paused tariffs. That means Trump is scared. People who think like this are either stupid or don't know Trump. Donald Trump can be a rash. But he is a full-time businessman and a part-time politician. And now he has to take revenge against China.
0:45 But why? Why is Trump's personal enmity with China? And will this harm or benefit India? Let's understand in today's video. We want to make economics so easy, that every member of your family can discuss economics. And can make their own opinions. If you want to support us in this mission, then press that like button once. Let's keep the target of 1 lakh likes. With this, such smart videos will keep coming in your feed. And then you will be able to get rid of cringe content. This is my guarantee. This is our new series, Trump vs The World. Where we will see Donald Trump's impact on the world in depth. That too from an Indian perspective.
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2:21 Backed by renowned AI investors and AI founders. More than 1 lakh people from more than 40 countries have done this program. That too from every field. From tech field and non-tech field. AI is relevant for HR, marketing, sales, everything. If you want to keep yourself safe from the job losses during the recession by learning AI, then you won't get a better opportunity than this. So click on the link below, register. And learn mind-blowing AI knowledge for free this weekend with Outskill. Chapter 1. Trump's personal enmity. Trump has a personal enmity with China. And he wants to destroy China. Like a boxing match, where one fighter punches hard, the other fighter also punches harder.
3:09 Let's rewind a little to understand. It's about 2008, when Wall Street was going through a financial crisis. There was a recession in the West and people didn't have money to buy luxury apartments. So real estate giants started looking towards the East. One of them was Donald Trump. He made a deal with Chinese property giant Evergrande to build a luxurious office tower in Guangzhou. But the Chinese government pushed Trump and drove him away from China. The deal failed. Trump's ego was hurt. Miss Universe beauty pageant was going on in 2012 and China lost here. China never likes to lose on a global stage. So they tried to bribe the judges.
3:54 At least that's what the media says. And Trump said against China, China? It didn't even come in the top 15. This was China's insult. From 2006 to 2017, China was running faster than Flash. Look at this data. Consistently, GDP was growing in double digits. And Trump wanted to do business with China. But his trademarks were not being approved in China. From 2006 to 2017, he repeatedly filed 130 trademark applications to do business in China. And China kept rejecting him every time. And Trump didn't even become president. When Trump became president in 2016, he made a big move against China.
4:42 He picked up a phone. It was not anyone else's phone. It was Taiwan's president's phone. Which means Trump had officially broken China's one China policy. According to him, Taiwan was independent. And for China, the issue of Taiwan is as sensitive as the issue of Kashmir for us. Then came COVID. Since 2019, Trump has been calling COVID a Chinese virus. Because he believes that this virus came from China. He repeatedly said that China manipulates the WHO and hides the data. And if Trump had won the 2020 election, it would have been proven that COVID was a Chinese bio-weapon that leaked from Wuhan. And to avoid this global insult,
5:28 China assured that Trump should not win and Biden should become president. Then people should move on from COVID and everything should disappear. And that's exactly what happened. After COVID, Russia-Ukraine crisis, Israel-Hamas crisis, so many things happened. The world forgot about China. But China did not let Trump forget. When Trump lost the election, the whole system boycotted him. Cases were filed against him. And Trump was repeatedly insulted. Trump vs China, this saga is so long that I have collected all the details in this document whose PDF you will find in the description along with other sources. China never thought that Trump would be able to overcome this defeat. But the opposite happened. With the help of Elon Musk,
6:13 Trump became president again in 2024. And now he wants to take revenge from China. But i understood that he has to take revenge. How can revenge be taken by making Yuan strong? Chapter 2, Fall of America. Trump says that China has betrayed America. China is responsible for America's fall. How? China devalues its currency so that trade becomes favorable for them. What does it mean? Let me explain. China's economy is an export-based economy. If they sell goods worth $1,000 to America, then they get 7,000 Yuan from the current rate. But if Yuan becomes strong and the rate improves, like $1 is equal to 6 Yuan, then instead of $1,000,
6:59 China will get only 6,000 Yuan. That means China's advantage will be lost. That means the currency will become strong, but China will become weak. And this is bad news for China. China uses a 3-step strategy to defeat a superpower like America. Step 1, Attract. Step 2, Trap. Step 3, Steal. Attract means China attracts American businesses to China. It forces them to open a factory in China. They make an offer impossible to refuse. Step 2, Trap. Making Nike shoes in a Chinese factory is 10 times cheaper than making them in an American factory. We explained this in the previous video of this series. I would highly recommend watching this video
7:44 if you want to understand Trump's tariffs. Step 3, Steal. China does reverse engineering. It steals technology. If you are a Shark Tank fan like me, then you must know Kevin O'Leary. He says that he does business with China and China never plays by the rules. It takes American tech, makes a cheap copy of it, and sells it back to America. This is deep seek.
8:29 And this is how China got so rich. Today, China is the only country that can economically go ahead and compete with America. Let's see what the data says side by side. World Bank data says that China's GDP is $18 trillion and America's is $25.5 trillion. But an average person in China earns $12,600 every year and the US earns around $82,800. On the other hand, China's economic growth is 4.8%, almost 5%, whereas America is growing at 2.8% because of being a developed country IMF says that China can overtake America around 2030 around the time when Trump's second term is about to end.
9:16 In simple words, if Trump doesn't do anything now, then he will forever be known as a president in whose tenure China left America behind. Do you know how big this would be? Do you think Trump can let this happen? China is an emerging power and America is a superpower. And history teaches us that whenever an emerging power doesn't kneel before a superpower, then the world goes into chaos. So much so that it can lead to a world war. Chapter 3. Lessons from History Graham Allison's book, Destined for War, discusses the inevitable World War III Here he has used a term, Thucydides Trap. Thucydides was a military general and historian
10:03 who studied the causes of the 27-year-long war between Athens and Sparta, and a detailed analysis on causes, political motivations, human nature. This analysis wasn't just about a single war. This analysis was about human nature. What does this mean? Athens and Sparta had a war in 431 BCE which destroyed all of Greece. At that time, Sparta was a superpower, just like America. And Athens was a rising power, just like China. There was a Peloponnesian War between the two. Do you know what the specialty of this war is? There was no clear winner or loser in this war. but Still, because of this, the whole of Greece was destroyed because of it. And now, the same thing is happening. Now, the war between China and America
10:49 will start like an economic war. But today, these two countries are nuclear powers. If this war doesn't settle, then in the next few years, the whole world will be divided into two parts. China supporters and China haters. In such a situation, who should India support? China or America? Tell us in the comments. Let's see which team wins. Chapter 4, Dollar vs Yuan. You see, in the previous video, we talked about how Trump wants to break the dollar. Basically, he wants to make it cheaper. The US Treasury has told America that bond yields are increasing. What does bond yields mean? It might seem like a mumbo-jumbo to you. So, let's understand it through an example. And by the end of this chapter, you will clearly understand what impact it will have on China.
11:34 Bond yields and bond prices have an inverse relation. Imagine, you have a childhood friend who asks you to lend him Rs 100. I will give you Rs 5 for lifetime every year. If you don't believe me, then I will write it on this coupon. I will give the bearer Rs 5 every year. Basically, he is giving you 5% interest or yield. But your neighbor is listening to this. He comes to you and says, you have incurred a loss. What if your friend runs away tomorrow? Then your Rs 100 will be lost. You unnecessarily incurred a loss of Rs 100. Now, you know your childhood friend. In emotion, you lend at 5% rate. But your neighbor can also be right.
12:21 Yes, it is possible that your friend will run away. The neighbor says, no problem. As a good neighbor, I will reduce your risk. I will give you Rs 80. And you sell me this coupon for that Rs 80. Then I will see how to get Rs 5 from him. The coupon price was Rs 100. Your neighbor calculated the risk and told you that he will buy the coupon from you for Rs 80. You think, let it go. I can bear a loss of Rs 20 from a risk of Rs 100. So, you also say okay. You sell the coupon for Rs 80. If you look at the absolute value, you were also going to get only Rs 5. Your neighbor is also going to get only Rs 5. But if you look at the percentage, you were getting 5% rate of interest. And your neighbor was getting 6.25%.
13:07 Time passes and your friend gives Rs 5 interest to your neighbor for 20-30 years. The neighbor is very happy. And you see that you made a mistake. You go back to the neighbor and say, return my coupon. Take Rs 80. The neighbor says, of course. You can buy it back. But the price is Rs 120. You are confused. You say, how did the price increase? He says, there is no risk now. Now you know, I also know. So, I am ready to hold it forever. If you want to buy, give Rs 120 and take it. If you buy this coupon, what will you get? Again, if you look at the absolute value, you will get Rs 5 every year. But if you look at the percentage,
13:52 your neighbor was getting 6.25%. And you are getting 4.17%. If this example is also difficult to understand, then I will give one more example. When an iPhone is launched, its price isthe highest. Because it has the latest features, best camera. Now, when a new iPhone launches next year, does the price of this old iPhone increase or decrease? Of course, it decreases. Because a new iPhone comes with better features. This also happens with bonds. Now China is holding US Treasury Bonds worth $800 million. Oh, sorry, sorry. Not 800 million, 800 billion. That is 66 lakh crores. To put things in perspective, our annual budget is also 50 lakh crores.
14:40 China has a lot of American debt. Now it will be difficult for them to sell in the market. Because now the yields of US bonds are increasing. That is, if someone wants to buy a US bond, he will buy new bonds. Not old China bonds. In this situation, the US is neither you nor your neighbor. The US is your friend, who asks for a little money from all over the world. Sometimes he says, Bro, give me 100 rupees, I will give you 4 rupees every year. That is, the yield is 4%. Sometimes he says, Bro, give me 100 rupees, I will give you 10 rupees. That is, the yield is 10%. It is not that much. This is just an example. Let's come back to your neighbor's example. While doing this, when your friend hears that
15:26 you are going to buy the previous coupon from your neighbor for 120 rupees, then your friend appears and says, Bro, give me 100 rupees, this time I will not give you 5 rupees, I will give you 15 rupees every year. What will you do now? Will you buy the previous coupon from your neighbor, which is giving you 5 rupees a year? Or will you buy a new coupon from your friend, which is giving you 15 rupees a year? That is how debt works. Now, because of Trump's policies, the yield is increasing. 5% to 10% is not so dramatic. Still, when tariffs were announced, the rate was 4.25, which has almost touched 4.5. What is the point? Never trust your Childhood friend But do share this video with him.
16:12 Chapter 5 Conclusion So what did we learn in this video? Number 1. Tariffs are just a start. Number 2. If Yuan is powerful, then China's advantage will be destroyed. Number 3. China, which holds American debt, around 800 billion, it is going to be worthless. What does Trump want? Trump wants a reason that the war against China should start. He wants to push China to the limit that China launches its own currency and tries to trade with the world with that currency. After this, it is possible that America will openly support Taiwan and say, Boss, Taiwan is a completely different country. Then if China does something in Taiwan, like Russia did in Ukraine,
16:59 then America gets a reason to freeze the dollars that China has. Just like America imposed sanctions on Russia, Trump wants to impose sanctions on China as well. So that whatever dollars they have, become paper overnight. China will give up. Because neither will they have such a big market to trade, nor will they have the dollars to trade. You see, Russia escaped the sanctions because it had China that could supply it. But now, Trump is friendly with Putin so that Putin gets a little away from China. Trump's next move could be to push Putin to his side so that China is left alone.
17:45 And that will be Trump's ultimate revenge. So what is the lesson for India here? The lesson is that this is the opportunity. Remember, China and India are two ancient civilizations which are similar as well as different. And the biggest difference between China and India is that China thrives in order and India thrives in chaos. China is as cool as ice and India is like water, which can change its shape according to the circumstances around it. This is India's ancient boon. That's why history has witnessed that we have fought every storm and we have risen stronger. Not in the short term, but in the long term. Today, there are so many American importers on LinkedIn
18:30 who want to import the most basic things. Water bottles, clothes, footwear, toys, plastic boxes. Opportunities are unlimited. And we can become China's natural alternative. Because now we know that whenever tariffs will be resumed, what will be the statistics for us? We have already known the answers to the exam. Now we just have to match the exporters. And this will become an excellent opportunity for us. An opportunity to capture a new market. If you think that India can take advantage of this opportunity, then tell us in the comments below what should we export? And don't forget to boost your business idea with AI with the partner of today's video, Outskill. Go to the description below,
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