🔴 END of DOLLAR Dominance: Trump Just United CHINA, JAPAN & ASEAN as They Decouple from the US

🔴 END of DOLLAR Dominance: Trump Just United CHINA, JAPAN & ASEAN as They Decouple from the US

Welcome back everyone. Thank you so much for joining me. President Trump is giving so many incentives to the countries of the global south to unite. It is quite unbelievable actually. If Trump can bring together China and Japan, you know, anything is possible. Then we’ll talk about that in a second. Biden united Russia and China, which went against the foreign policy agenda that was upheld by US administrations for decades. And now we’re uniting Russia, China, and Iran and possibly bringing to the mix other actors. It’s remarkable. Nearly every week there is something that signals to the rest of the world uh that makes the rest of the world go, “Yeah, it is time to join forces.” And even previously quiet, cold relations get a bit of a boost. It’s quite it’s quite great. It is surreal actually how fast this is happening. You might recall that in my recent interview with a bricks expert Yarus lovely Savoik, he noted that during his visit to Brazil this spring, just a couple of months ago for a bricks meeting, joining forces to counter President Trump’s tariffs was on top of the agenda for the BRICS block. So, it is definitely happening. There’s a lot going on behind the scenes. Now is a unique opportunity and of course the trigger coming out of the US could in a way be uh you know you could say a blessing in disguise in the sense that uh you know it it it could be finally one of those factors that pushes the global south towards greater coordination in terms of trade policy. Well, this week we have a new dose of reality check. In a significant geopolitical and economic development, China, Japan, South Korea, and the 10 member states of the Association of Southeast Asian Nations or ASEAN have issued a joint statement which underscores their joint goals to reduce reliance on the United States dollar. And yes, dellerization is not only going strong, but it is accelerating and to increase regional resilience. This is a very important move. Although, of course, I’m sure we’re not going to hear about it in Western mainstream media anytime soon. The statement was issued on May the 4th during the 28th ASEAN finance ministers and central bank meeting. The ASEAN block is actually represented by the following countries. You can see them on your screens right now. When combined with the economies of China, Japan, and South Korea, this is trillions of dollars worth in trade and investments on an annual basis. Just between China and ASEAN, trade surged to nearly $1 trillion in 2024 last year, and it is on track to exceed that number this year. Before we dive into the details, it is quite clear that the declaration is a strong signal of an increasingly unified stance, if you will, against rising global trade protectionism, which although not named explicitly, clearly targets the United States. President Donald Trump’s aggressive tariff policies shook global economies. And so, let’s walk through the key points of the joint statement. China, Japan, South Korea, and the 10 ASEAN members condemn trade protectionism. The group warns against quote escalating trade protectionism. This underscores concerns over Trump policies that disrupt global trade flows and also pose really significant challenges to the economic integration of emerging markets into global economies. The AEAN nations indicate that they are now going to change their stance too. They’re going to adjust their policies in response to Trump’s actions. They’re shifting toward prioritizing regional crossber trade and developing ties to amplify their resilience in their own resources. So in a sense this sort of shows that they are adjusting their trade policies in response to Trump’s protectionist lead. A major policy priority is now to quote reinforce long-term resilience in the region. How will they seek to do that? How are they going to achieve that? And this is very very important. The ASEAN blog here says they will start reducing dependence on the United States for trade, finance, and economic security. So there you have it. This is a logical response that is only possible in a world where competing powers are increasingly assertive. Western leaders still appear to underestimate the accelerating shift toward multipolarity and toward multiple centers of global power. However, it is quite difficult to deny that to remain uh to remain uh effectively in denial at this point in time. Secretary of State Marco Rubio admitted recently that the unipolar moment was temporary. It was an anomaly. he said, and I played a clip for you in a recent video. That was likely a very brief moment of lucid thinking, nothing more. Washington is still, of course, very powerful, but its power is weakening, and it has itself to blame as it habitually uses the United States dollar as a weapon. This isn’t specific to Biden or Trump administration. It is a policy that transcends party lines and it has been the go-to form of economic coercion for decades. Let’s not forget the brutal sanctions on Syria imposed under former President Obama. Except that now, of course, the shift toward multipolarity creates a range of appealing options for the global community. regional financial and trade infrastructure is prioritized as is evidenced by the joint ASEAN declaration which brings us to the next point in the statement. China, Japan and South Korea along with ASEAN members are now seeking to enhance intra regional trade and finance. What specifically does that even mean? Well, they’re going to expand the use of the Chian Mai initiative, which is a regional currency swap arrangement for the United States. It means that these countries are actively setting economic policies to move away from reliance on Western financial institutions such as the IMF and World Bank. Will it affect the demand for the United States dollar? Absolutely. It absolutely will. Over time, it has the potential to reduce that demand quite significantly. But that’s not all. There’s actually more. China, Japan, and South Korea, as well as the ASEAN members, are accelerating the development of local currency bond markets. Here’s what it will help achieve. It will help reduce threats to their economies from external shocks such as the United States dollar foreign exchange rate and many other things related to finance. And ultimately it will help them reduce their reliance on the dominance of the United States dollar in their transactions. So this is a very important step. As you can tell the rise of regional economic block has consequences for western markets and for the use of the dollar. Asia is signaling a more self-contained economic framework which will focus on south south cooperation. It will focus on regional development and largecale trade and investment agreements that exclude western powers. This is of course a blow to the US dollar in the long run if things progress in the same manner as they have been. Lastly, as the members emphasized their support for the regional comprehensive economic partnerships and here’s what it means. This is very important too. The regional comprehensive economic partnership is actually one of the largest trade pacts in the entire world that is active right now. It encompasses 15 countries. And can you guess a country that it specifically excludes? Take a guess. It excludes the United States. Again, dellorization is ramping up. And as you can see, there are multiple ways in which it takes shape. Multiple actors are now saying, you know what, we’ve had enough and we’re going to review our trade policies and more broadly speaking, we’re going to adjust our economic policies to support regional development and to support reliance on local currencies. We’re going to be in a position to respond to this continued storm of attempts from the West and the United States more specifically to coers us economically. and they’re certainly on the path to do so. The joint declaration is a signal of a deeper economic integration within Asia. These countries reveal that there are now prioritizing regional Asian trade partnerships over global and especially western partnerships. In terms of implications, there are several that I can note here in this video very quickly. First of all, global actors are in fact in the process of a strategic decoupling from the west because they recognize the threats that are posed to their economic sovereignty and ultimately of course to their sovereignty as such. Overexposure to the United States economy both in terms of trade and in terms of finance is seen as a major risk. And so their goal now is to mitigate that risk as is evidenced by the declaration that I just shared. Another important observation that I would like to make here is that as President Trump seeks to bring manufacturing back to the United States, which let’s be honest, it takes years to accomplish, this is not a goal that can be reached within just four years. His straight policies appear to have resulted in an unprecedented regional economic alignment in Asia. He brought together countries with historically tense relations. And of course, I’m talking about uh China and Japan here. And he actually gave them a way to align economically. I think you would agree with me. The joint initiative represents a milestone in the shift toward a multi-polar economic world order and Asia is definitely showing its readiness to assert greater independence and solidarity in response to western and particularly American unfortunately economic policies. Since the tariff war just began, it just started. This is likely just the beginning, too, as more countries will see the benefits of aligning to support their economic development. Let me know what you think about this news in the comments below. As always, I would love to hear from you. Thank you very much for watching. Remember to show your support. It truly goes a long way. Remember to become a subscriber to worldaffinandcontext.com. It is my subst. And I will see you back here tomorrow. Enjoy the rest of your day. Take care.

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