American investor, CEO and Chief Economist of European Pacific Capital Peter Schiff wrote last night (April 30th evening, Beijing Time): "Which is a bigger problem, overproduction or food shortage? These are the two problems that the United States and China are about to face. China must find ways to deal with excess food, while hungry Americans will struggle to make ends meet."
[Clever] Comment: The Chinese have experienced hard times and thus deeply understand the importance of being prepared for danger in times of peace. They always focus on increasing production and making savings. In case of tough times, they ensure their own survival. On the other hand, Americans are used to living beyond their means, relying on borrowing, and not saving. They squander their days with the privilege of the dollar hegemony. These two completely different lifestyles and social cultures determine the different ways the two countries respond to economic challenges. Additionally, Peter Schiff's remarks also imply the so-called "overcapacity" issue. Europe and America accuse China of "overcapacity," but in reality, this is a natural result of China's super-large market effect and an inevitable product of China's production technology progress, after processing trade shifts to general trade and builds a complete industrial chain. In response to the "China overcapacity theory" from Europe and America, we should take the following measures: First, continue to increase investment efforts in countries along the "Belt and Road"; second, support Chinese enterprises in investing overseas and developing locally by producing and selling products in the investment location, which not only saves transportation costs but also gets closer to the market; third, expand service trade, especially improve the level of productive services, so that our services can be sold around the world like products.
Original article: https://www.toutiao.com/article/1830870076928196/
Disclaimer: This article represents the author's personal views.