La Cina lancia l’allarme sul crollo dello yen giapponese: crolla il potere finanziario del G7!
A quiet but unmistakable global economic clash is unfolding and countries are beginning to pick sides. The G7 finds itself in an awkward bind. China controls key sectors they rely on. Yet the same nations depend on Chinese investment and demand to keep their economies alive. This contradiction shapes nearly every decision they make. The United States is a perfect example of this tugofwar. Washington is determined to slow China’s progress in artificial intelligence, which is why they’ve been tightening export barriers on advanced chips and the machines that make them. But then a curveball appears. Trump pushes to authorize Nvidia’s H200 sales to China. The H200 sits below the Blackwell line, but surpasses older approved chips. This single move exposes how badly America still needs access to Chinese buyers. Tech firms have over $50 billion at stake there. Yet, America hasn’t abandoned its strategy of containment. The temporary calm between Beijing and Washington is extremely fragile. A disagreement involving Russian oil or a political flash point could prompt the US to resurrect heavy tariffs or harsher restrictions within days. And the so-called rare earth understanding is not a permanent deal. If China reverses it, the US would instantly face shortages in sectors like semiconductors, electric vehicles, and even defense manufacturing. Evidence of tightening supply is already visible. Refined rare earth exports to the US dropped to under 6,200 tons in October, the lowest in months, while shipments of raw oxides have increased. China knows the real pressure point isn’t the mining, it’s the refining capacity the West barely has. For Western nations, the only long-term solution is rebuilding their own supply chains, which will cost staggering amounts of money. Larger deficits and expanding national debt are unavoidable. And despite political promises, this isn’t a short one-year project. It’s a long multi-year rebuilding effort. But now that the process has begun, turning back is no longer an option. The reshoring movement will create jobs in the US. And even though it won’t be efficient, leaders like Besson have convinced the public it’s a necessary shift. Still, every time Besson waves around props in his presentations, the reality becomes clearer. The country is preparing for a spending wave that will push inflation even higher. Meanwhile, Japan appears to underestimate the leverage China holds despite being neighbors. Japan’s Prime Minister Tai Chi refused to alter Tokyo’s stance on Taiwan after Beijing requested a reversal. Instead, she reinforced Japan’s existing position, an action China interprets as a challenge. Beijing has already warned that it will respond with serious counter measures, which today almost always come in the form of economic retaliation. China has already shown what it can do. During the dispute over the islands years ago, it triggered consumer boycots that wiped over a trillion yen from Japan’s export figures. That episode was manageable back then. But now the stakes are far higher. China could weaponize its rare earth supply again. Japan’s automotive and semiconductor sectors depend heavily on those materials, as does much of the world. Beijing might not want to escalate directly unless Japan crosses another line. But a slow squeeze throttling tourism or selectively targeting industries is entirely possible. What makes Japan’s choices puzzling is how exposed it already is. Only around 5% of China’s trade involves Japan, and China can easily replace many Japanese imports with domestic goods. Japan, however, relies on China for about 20% of its total trade, including lowcost industrial components vital to manufacturing. That imbalance means China has far more leverage than Tokyo. Japan is also drowning in repeated stimulus spending. Since 2020, its government has relied on massive financial packages to hold the economy together. In 2025, another wave, roughly 21 trillion yen, or around $140 billion, is on the way. Much of that is aimed at supporting automakers, chip producers, and other core industries while also helping households manage rising prices. But if China restricts rare earth exports, all of that stimulus will get wiped out immediately, undoing years of effort in a single move. The whole situation has reached a point where the stress and conflict simply aren’t worth enduring anymore. No one truly knows what the next days will bring, but one thing is obvious. Everything that can fall apart is starting to fall apart. Japan’s recent attempt at economic stimulation is already creating new risks, and the country is drowning in debt, over twice the size of its entire economy, roughly 230% of GDP. Realistically, paying this off is impossible. At most, Japan can stall for time. When a government throws borrowed money at a problem without proving the strategy will succeed, investors naturally hesitate. They start demanding higher returns before providing loans, pushing Japan nearer to a default it can’t afford. Businesses end up caught in the crossfire as their own financing costs surge. Picture a Japanese industrial company right now. American tariffs are slicing into margins. China’s manufacturers are flooding markets worldwide and interest rates at home are creeping higher. It’s a suffocating squeeze from every direction. And in the middle of all this, Japan chose to provoke China. something that makes little strategic sense. The remarks made by Japan’s leadership seemed abrupt, unexpected, and not triggered by any recent move from Beijing. But the industry’s troubles are far from over. Another blow is already hitting them. The yen is rapidly losing value. In just a couple of months, the yen plunged more than 8%, slipping from 145 to around 157 per US. That’s a serious drop, especially when the dollar itself isn’t exactly stable. These days, investors suspect Japan’s stimulus is more likely to create inflation than real growth. If China decides to retaliate, the situation could escalate quickly, and Japan is in no condition to endure that. Most of Japan’s critical materials, including nearly all its energy, are brought in from abroad. LG alone makes up almost 80 90% of the energy supply. A sinking yen makes these imports far more expensive, threatening both production and inflation rates. A currency intervention may be imminent, meaning Japan might have to liquidate its dollar reserves to prop up the yen. But doing so drains its financial defenses even further, creating a destructive loop of worsening decisions. Meanwhile, China is steadily gaining influence in global financial markets. They’re testing whether investors are ready to shift their holdings away from Western systems. And the early results suggest the answer is yes. Not long ago, China issued $4 billion of dollar denominated bonds which were met with overwhelming demand. Now, China has repeated the experiment with $4 billion worth of euro bonds and received nearly $100 billion in bids, an astonishing 26 times the amount offered. These bonds were priced barely above the EU’s own rates. This sends a clear message to Washington and Brussels. China can now raise money in the world’s dominant currencies almost as cheaply as the West. That means future sanctions will be much harder to use effectively. Even if access to Western markets were restricted, China could still issue dollar and euro bonds through Hong Kong and tap global liquidity without much trouble. More importantly, large institutions, central banks, and sovereign wealth funds snapped up over 40% of China’s dollar bonds. Half the buying came from outside Asia, including Western investors themselves. Their reasoning is simple. Reduce exposure to Western counterparty risks. Many countries now prefer to hold Chinese euro bonds stored in Hong Kong instead of relying solely on the EU. Yes, inflation will still impact these currencies over time, but diversifying away from Western systems is becoming a powerful incentive on its own. And because China dominates global trade flows, investors trust that Beijing can always acquire the dollars and euros needed to repay debt. Quietly, China is constructing its own version of the Euro dollar system in Asia. Asia’s foreign exchange reserves have now climbed to nearly $8 trillion, growing by over $400 billion just in 2025 alone. These reserves are typically invested in currency bonds, mostly dollars and euros stored in Western banks like those in New York. That arrangement works fine for G7 nations, but for BRICS members, it always comes with a risk of sanctions. China isn’t replacing treasuries or European bonds, but it is becoming a credible alternative, and investor confidence reflects that. At the same time, bonds denominated in China’s own currency are gaining momentum. Since 2022, companies and governments have been issuing renb based dim sum bonds in Hong Kong. Demand has exploded from around 600 billion RMBB to nearly 2 trillion in only 3 years and is likely to set new highs again. This shift began when the US raised interest rates above 5% in 2022, making dollar borrowing extremely expensive for many nations. Those high rates remain today, fueled by America’s massive deficit spending. And with the trade war adding pressure, the US bond market is under significant stress. All of this indirectly strengthens China’s position, an outcome rarely mentioned in mainstream discussions. Even though the US recently reversed some small tariffs like those on coffee and bananas, the core tariffs, the big ones are staying. And if those tariffs stay, government spending will continue accelerating. America is making a high-risk, high stakes bet. China, on the other hand, is advancing slowly but steadily, letting small gains accumulate over time. Which side will ultimately prevail? That remains uncertain, but the questions are worth asking. Can Japan pull itself out of this downward spiral? And will China continue expanding its dollar and euro bond programs? Share your thoughts. Stay safe and stick around as we try to navigate these unpredictable developments.
The G7 is stuck in a dangerous contradiction: they rely on China for critical materials, investments, and consumer demand, yet they attempt to contain China’s rise in AI, technology, and manufacturing. This tension now shapes nearly every major policy decision.
In this video, we break down the escalating economic battle involving the United States, China, Japan, and the broader global financial system — and why the next few months could reshape the world economy.
🇺🇸 US–China Tech War Intensifies
Washington continues restricting China’s access to advanced AI chips, yet political pressure pushes for exceptions like Nvidia’s H200. With over $50 billion in tech revenue tied to China, the U.S. faces a painful dilemma between containment and corporate survival.
🇨🇳 China’s Rare-Earth Leverage
China still controls the refining bottleneck for rare-earth minerals, giving it unmatched power over Western supply chains—especially in semiconductors, EVs, and defense manufacturing. Export figures already show tightening supply.
🇯🇵 Japan on the Brink
Japan’s economy is buckling under massive stimulus spending, a plunging yen, rising import costs, and over 230% debt-to-GDP. And yet Tokyo has chosen to challenge Beijing politically, risking retaliation that could devastate Japan’s auto and chip sectors.
💴 Yen Collapse & Energy Shock Risk
A roughly 8% drop in the yen in just weeks threatens to spark a new wave of inflation, especially as Japan relies on imports for nearly all its energy.
💶 China’s Surging Financial Influence
China’s recent $4B dollar bonds and €4B euro bonds were met with explosive global demand, signaling a shift in investor confidence and weakening the West’s ability to use sanctions. Meanwhile, renminbi “dim sum” bonds and Asia’s record-high reserves point to a new financial architecture emerging.
🔥 The Global Stakes
Both the U.S. and China are making high-risk bets.
Japan is fighting economic gravity.
And global markets are shifting in ways most people aren’t even watching.
⚠️ What happens next?
Will Japan escape its downward spiral?
Is China building an alternative to the Western financial system?
And how will the G7 survive its dependence on China?
Share your thoughts in the comments and stay tuned for more deep-dive breakdowns of the world economy.