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China runs large trade surpluses with the United States. Typically these funds would be returned to the US as capital investments, either through buys of fixed assets, securities, or lending.
China, however, is liquidating stakes in companies in the United States, and is selling off its portfolio of Treasury bonds.
These two trends are resulting in enormous imbalances in Balance of Payments, which much be re-balanced via China's central banking activities. China is clearly recycling giant capital pools from the United States for investment purposes inside China, and among China's top trading partners.
And because the US dollars are never returned to the capital markets, it is also clear that China and the BRICS countries are setting up their own trading and economic bloc, funded largely with US debt instruments.
(Editor note: At about the 2:00 mark, I misspoke. The US ran a trade deficit of approximately $800 billion, not surplus. Apologies.)
Resources and links:
Bloomberg, US Trade Deficit Widens to $78.8 Billion, Largest in Two Years
https://www.bloomberg.com/news..../articles/2024-09-04
Why is China dumping US Treasuries for gold?
https://x.com/SputnikInt/statu....s/178313812393054619
Vanishing Act: The Shrinking Footprint of Chinese Companies in the US
https://rhg.com/research/vanis....hing-act-the-shrinki
China Should Explain ‘Enormous’ Data Gaps, US Ex-Official Says
https://www.bnnbloomberg.ca/in....vesting/2024/09/06/c
Bloomberg, China Plans to Sell Dollar Bonds in Saudi Arabia as Ties Deepen
https://www.bloomberg.com/news..../articles/2024-11-05
The Economist, Chinese firms are growing rapidly in the global south
https://www.economist.com/brie....fing/2024/08/01/chin
Closing scene, Yangzhou Gardens, Jiangsu
Once teeming with life, Lake Mai Ndombe (meaning Black Water) in the Congo Basin is now depleted and local communities face starvation. The vanishing fish population can be traced back to an unlikely culprit, but they have a hopeful solution at the Mai Ndombe REDD+ Project that could turn the tide.--------------------------------Black Water is a poignant exploration of survival and resilience deep in the remote forest of the Congo Basin at the Mai Ndombe REDD+ Project. This short film delves into the lives of a local community around Lake Mai Ndombe (Lake of ‘Black Water’) in the Democratic Republic of the Congo. This once bountiful body of water now teeters on the brink of collapse. Over the years, the lake’s vibrant fish population has dwindled, threatening the livelihoods of those who have relied on its resources for generations. The film traces this ecological decline back to an unexpected source: mosquito nets. Originally introduced by aid organizations to combat malaria, these finely meshed nets found a new, unintended purpose as fishing tools. However, their use has come at a steep cost, leading to the overfishing of even the youngest fish, disrupting the delicate balance of life within the lake. Through intimate interviews and breathtaking visuals, Black Water captures the struggle of the lake's surrounding communities as they face the harsh reality of dwindling resources. It explores the cultural and generational shifts brought on by the environmental crisis, revealing the deep connection between the people and the lake that sustains them. Amidst the struggle, Black Water captures a glimmer of hope. The communities, in partnership with Wildlife Works, have embarked on an ambitious project to restore their ecosystem. By using their profits from carbon credits earned through forest conservation, they have built sustainable fish nurseries. This project not only offers a lifeline to those on the brink of starvation but also holds the promise of restoring balance to the lake's fragile ecosystem. Black Water is a powerful testament to resilience, the importance of community-driven solutions, and the enduring spirit of a people determined to secure a sustainable future for their children.For more community stories, sign up for our newsletter: https://wildlifeworks.activehosted.com/f/1