It’s never been more important for the United States to turn its attention to Xi Jinping and his malign ambitions for Communist China in the world economy. In its latest gambit, the Chinese Communist Party (CCP) is trying to make India’s Rupee the currency for BRIC countries—Brazil, Russia, India, China, and South Africa. If this happens, it will devastate the U.S. economy, damage India, and empower China.
The CCP has been waging a Wei Chi war for years. A Wei Chi war or “encirclement” war involves setting long-term strategic plans to gain power over one’s adversaries rather than engaging in open conflict. However, this war “by other means” can be just as deadly.
Communist China has been hard at this game all over the world. In March, Brazil and China struck a trade deal to ditch the U.S. dollar and BRIC countries announced the formation of a new currency, effectively kicking the U.S. dollar out of trade with them. Even our allies and economic partners are turning away from the United States economy for what they see as a better alternative to a rapidly devaluing U.S. dollar. France has made oil deals with China in yuan, while Malaysian Prime Minister Anwar Ibrahim said there’s no reason to continue to rely on the U.S. dollar.
How did this happen? We’ve become our own worst enemy. And we have no one to blame but ourselves—our own U.S. Treasury that is. The decisions of the Biden administration have decimated the value of our dollar. We cannot continue to spend more money we don’t have, only to throw more cash into our economy without considering the repercussions. The more money this administration prints, the higher the supply of the U.S. dollar, and the lower the demand for it. From a trade perspective, we import about 75 percent of our everyday goods. When the value of our dollar is in freefall, countries who sell us goods demand more money in exchange.
That means you, the consumer, pay for the skyrocketing prices. This puts the United States in a dire position for Communist China to exploit. This is how Xi Jinping and the Chinese Communist Party weaken America. As demand for the U.S. dollar drops, the CCP can move in like a weed growing in a garden. Add in China’s malign actions to weaken our global standing, plus the decline in demand for the dollar, and more countries will continue to shift towards the yuan or other currencies.
With the United States out of the picture, China can take control of the world economy. That’s why coercing India into making the rupee the currency of BRIC is in China’s best interest, not India’s. If the rupee becomes the currency for BRIC, its value will increase significantly. Once this occurs, the cost of buying imports decreases and the cost of buying domestic increases dramatically. This would be a bad thing—a very bad thing—for a large portion of India’s population.
This is the antithesis of what is happening to our economy today. While our dollar plummets in value, Communist China is looking to saturate India’s economy. No economy wants to sit on either end of the spectrum, which is why it’s so important to have balance. Devaluing our dollar means consumers pay more for imported goods, while saturating India’s economy means their consumers pay more for Indian-made goods. In both cases, China wins.
Over 30 percent of India’s population is considered extremely poor, living on less than $1.25 a day. If the value of the rupee increases even more, one-third of the entire 1.4 billion population will become even poorer. A large portion of India’s lower-class already struggles to afford basic goods, and the cost of Indian-made goods will skyrocket. In turn, India’s government will be forced to import cheaper Chinese goods—bolstering China’s economy and shrinking India’s. Like Latin America, if it becomes cheaper to purchase foreign goods, India will lose jobs. That means political upheaval, it means riots, and it means an India in disarray. Meanwhile, this will empower Xi Jinping, which is exactly what he wants.
The world economy is ripe for exploitation—if we allow it. The United States and India must step up to the plate and be proactive. I truly hope India will not fall for Xi Jinping’s stratagem. This ploy could lure India into chaos and destabilize the international order. We must do everything in our power to ensure China does not gain such dominance. We must start to play our own game or at least understand Beijing’s if we have any hopes of winning.