State Central Banking vs Private Central Banking | Wen Tiejun

Let's delve into the core reasons underlying the strategic confrontation between the People's Republic of China and the United States of America, as this unveils a significant systemic discrepancy: [...] The issuance of the renminbi (RMB) is fundamentally based on the authority of the Chinese government, specifically through the People's Bank of China (PBC). The basis for the issuance of the renminbi is definitely not gold. The reason this money is valuable is because it is a sovereign currency issued by the state and backed by state authority. Empowering a sovereign currency establishes credit. The currency creates credit, and the sole resource available is political authority. Thus, political authority, governmental power, and the administration in control align with the currency system.

Wen Tiejun (温铁军) is a Chinese agricultural economist and a professor at the Renmin

University of China, best known for his studies on the Three Rural Issues in Mainland China.

 

On the other hand, the source of the US dollar's credit is an institution established by private bankers, not a country. Pay attention, this difference matters: The US dollar is actually issued by an institution called the Federal Reserve. The Federal Reserve is neither an official entity nor a government institution; instead, it is an organization operated by private bankers. This particular organization possesses the authority to issue the national currency and determines the financial policy of the United States, which the government then implements.

 

 

» The root cause of global chaos is financial capital globalization, which is

supported by military hegemony. « Wen Tiejun's complete discourse video.  

 

This occurrence is quite rare across the globe, both in terms of nations and systems. In the majority of countries, it is the political power of the state that grants authority to its national currency, forming a sovereign currency. In a select number of nations, such as the United States, institutions are established by private banking entities, and the government subsequently enacts the policies of these private banker collectives.

[...] Therefore, throughout the extensive history of the United States, numerous influential presidents have attempted to reclaim monetary authority. All of them ultimately failed. Almost every president who was resolute in their determination to reclaim monetary authority ended up deceased, including the widely recognized Kennedy assassination. These events all share similar demands to restore monetary rights back to the government, yet none of these plans have been fully realized.

[...] China continues to maintain its national control over financial capital. For what specific purpose? In recent years, when China faced global crises and a decline in exports, the Chinese government mainly relied on national finance, investing in infrastructure that may not yield immediate profits. A straightforward example is the allocation of funds for the construction of roads and railways in rural, mountainous, and even desert regions. All these investments cannot be recovered in the short term, and it's also difficult to recover them in the long term. So, should we invest? We should, because if we don't, businesses will have no market and workers will become unemployed. On the other hand, the government would have to use its finances to pay for unemployment benefits. Rather than doing that, it's better to invest. 

» The United States exploits the world's wealth with the help of "seigniorage." It costs only about 17 cents to produce a 100 dollar bill, but other countries had to pony up 100 dollar of actual goods in order to obtain one. It was pointed out more than half a century ago, that the United States enjoyed exorbitant privilege and deficit without tears created by its dollar, and used

the worthless paper note to plunder the resources and factories of other nations. The hegemony of the US dollar 

is the main source of instability and uncertainty in the world economy. «

Ministry of Foreign Affairs of the People's Republic of China, 2023. 

[...] I perceive this as one of Trump's most proactive and forward-thinking policies—to focus on the advancement of infrastructure development. His most significant challenge is that the US lacks the so-called state-owned enterprises (SOEs) similar to those in China. Additionally, it doesn't have a state-owned banking system. China's system uses state banks to receive currency from the government, which is directly paid to state-owned enterprises. These enterprises then directly engage in infrastructure construction, maintaining China's economic growth and sustaining employment. The US uses private banks to issue more currency to buy government bonds, which then leads to a virtual capital expansion, with two hands shifting the crisis to the whole world.

[...] Analyzing this with American theory suggests China's state-owned banks and state-owned enterprises are inefficient. They don't provide tax revenue and occupy a large amount of capital. But just because financial resources are utilized doesn't mean nothing is produced. A significant amount of wealth is indeed generated, but this wealth manifests in the form of airports, seaports, train stations, highways, and high-speed railway systems. None of these investments can generate returns in the immediate short term. Consequently, a substantial amount of capital in China's state-owned banks is currently tied up. According to general free-market economic theory, those that can't be recovered soon should all go bankrupt. As long as you genuinely and sincerely execute what is purportedly stated in the media today, China's economy should have gone bankrupt long ago because its large investments can't be recovered quickly.

» I think he [US Fed chairman Jerome Powell] is a very stupid person, actually. «
Not-calling-the-shots POTUS, July 13, 2025.

 

[...] How Trump might approach the situation? He doesn't have China's methods. So, how will he do it? By relying on private bankers to reform America's railways? How long will it take to recoup the investment? Why would private individuals invest in rebuilding American roads and airports? Private investment is dropping. This is similar to what's happening in China: whenever there's an economic crisis, China's private investment decline is inevitable. So, how do you counter it? You have to rely on state investment to push it up. One goes down, the other goes up. That's how it is. 

 

» The US uses private banks to issue more currency to buy government bonds, which then 
leads to a virtual capital expansion, with two hands shifting the crisis to the whole world. «

 

A significant number of individuals are critical of China's system. I don't intend to imply anything else; I'm merely suggesting that you observe the actual impact. I also don't wish to defend this so-called closed system of China because I equally dislike this bureaucratic system, but it actually maintains the nation's foundational employment and crucial economic development.

  

Reference:
Wen Tiejun (2021) - Money, War, Supremacy: The Root Cause of Global Chaos. (video)

See also:
Ministry of Foreign Affairs of the People's Republic of China (2023) - US Hegemony and Its Perils. 

Stephen Mitford Goodson (2019) - A History of Central Banking and the Enslavement of Mankind.
Murray N. Rothbard (1994) - The Case Against the Fed. (the legal monopoly of counterfeiting)

G. Edward Griffin (1994) - The Creature from Jekyll Island. 

Eustace Mullins (1952) - The Secrets of the Federal Reserve.

Ezra Pound (1939) - What is Money for?

China's Preparations for Reunification With Taiwan Around 2027 | Jin Canrong

The Chinese government has consistently avoided setting a timetable for resolving the Taiwan question, emphasizing instead President Xi’s call for peaceful reunification with patience, sincerity, and effort. Despite this, American analysts frequently forecast 2027 as the likely point of resolution. Their view is shaped by China’s large strategic reserves, new industrial measures, and visible military procurement, all of which they interpret as signs of preparation for decisive conflict.

Jin Canrong (金灿荣), leading scholar of China–US relations, American politics, and foreign policy;

CCP strategist; Professor and Associate Dean at the School of International Studies, Renmin University of China.

From a military perspective, China faces few obstacles. A Taiwan operation could be carried out through blockade or direct combat, and success would likely come quickly. US intervention is not considered probable, making the true challenges economic and political rather than military or diplomatic. China’s main vulnerabilities are its dependence on imported resources, its lack of a fully unified domestic market, and the influence of elites with assets or family ties abroad. By contrast, Russia’s economy, though smaller, is buffered by its abundant resources, allowing it to withstand sanctions more effectively.

Among many other heads of states, Putin, Kim Jong Un, Park Geun-hye, ex-President of South Korea, and Masoud

Pezeshkian, President of Iran, joined Beijing’s historic victory parade on September 3, marking 80 years since

Japan’s WWII surrender, where China showcased its hypersonic missiles and nuclear triad. 
 

The government is taking steps to address these weaknesses. Grain reserves now exceed two years thanks to improved storage and expanded farmland. By 2027, new oil and gas discoveries together with Central Asian pipelines are expected to reduce import dependence. Coal-to-oil conversion and the spread of new energy vehicles will further narrow the energy gap. The more difficult issue lies in market access, as domestic circulation remains weak due to provincial barriers. Efforts to expand the Belt and Road initiative continue, though China lacks the military and cultural instruments historically used by the West to protect overseas investments.

» US intervention is not considered probable. «

Jin Canrong's complete discourse video.

 

Diplomatically, a resolution of the Taiwan issue would have far-reaching effects. ASEAN countries, seeing the United States as unreliable for security, would likely align with China, turning the South China Sea into an inland sea. Japan and South Korea, highly dependent on maritime trade and external resources, would also face strong pressure to yield. Once the Taiwan Strait and the South and East China Seas are secured, Shanghai and the eastern seaboard would be protected, creating what could be the safest period in Chinese history.

Welcome to the Eurasian Century.

 

Historically, China’s threats came from the north, but industrialization eliminated that danger. Today, the principal threats come from the sea, the heartland of Western industrial power. Once Taiwan is reclaimed and the maritime approaches are secure, China can focus entirely on internal development and raising living standards. The most serious obstacles to this outcome are economic fragility and political complications, not military or diplomatic resistance. The year 2027 therefore stands out as the most likely turning point, a moment that could bring short-term hardship but ultimately mark the beginning of a new and safer era for China.

Reference:
Awakening Richard (September 3, 2025) - Famous Chinese Professor on China's progress regarding war preparation. (video)

 

See also:

Samim Aktar (March 4, 2025) - Trump 2.0 and the China Containment Strategy.

Hybrid Warfare & Strategic Stalemate in China–US Competition | Jin Canrong

Structurally speaking, China–US relations are certainly not good. The logic is quite simple: the world is changing significantly, and China is the variable, while the US is the leader of the original order. Naturally, the US is not pleased. [...] Whether it's Biden or Trump, both consider China their only opponent. This is very critical. America’s power is still greater than ours.

Jin Canrong (金灿荣), leading scholar of China-US relations, American politics, and foreign policy;

CCP strategist; Professor and Associate Dean, School of International Studies, Renmin University of China.

[...] China–US relations entered full competition in late 2017, when the US began to wage a hybrid war against China. It is called a hybrid war because multiple tactics are employed: trade war; industrial war (denying chips and pushing Chinese companies to relocate industries); financial war (aggressive interest rate hikes to extract Chinese capital); legal battles; media campaigns (such as accusations of genocide in Xinjiang); and biological warfare allegations, including SARS and COVID-19 claims.

» Siding with the EU to split the West. «
The China-US Competition, Jin Canrong, August 19, 2025.

[...] There are also sovereignty issues concerning Xinjiang, Tibet, Hong Kong, Taiwan, and the East and South China Seas, as well as opposition to China’s Belt and Road Initiative (BRI) through new alliances, like AUKUS (US, UK, Australia) and the Quad (US, India, Australia, Japan).

[...] The first phase involved US offensives and China’s strategic defense; now, we have entered a strategic stalemate. The key to strategic alignment is domestic management. The US faces high debt, declining manufacturing, and internal challenges, while China confronts economic performance issues, social conflicts, and a rapidly falling birth rate. Addressing domestic challenges strengthens both nations’ positions abroad.

[...] The US strategy toward China involves territorial ambitions (Canada, Greenland, Panama Canal), aligning Russia, reorganizing allies (Europe, Japan, Canada), and increasing defense spending to ensure allies can act independently. China, meanwhile, has abandoned its low-profile policy, focusing on active defense and strategic deterrence.

[...] Since last year, China’s defense policy has changed. China has moved from passive strategy to assertive action. Strategic stalemate depends on addressing domestic issues first, then external threats. For external alignment, China should coordinate with the EU to balance the West, manage neighboring relations, and continue Belt and Road and BRICS initiatives. This roughly represents the current positions of both parties.

 

Reference:
Jin Canrong (August 19, 2025) - The China-US Competition.

The US Will Now Cannibalize Its Own Allies & Vassals to Survive | Lu QiYuan

President Trump said something very honest: “If China and the US work together, we can solve all the problems in the world.” However, the establishment elites in the United States face an ideological challenge. They are fundamentally anti-China, and the Chinese ruling elites do not accept the concept of liberal democracy. The Chinese elite, myself included, are profoundly nationalistic and patriotic. To us, social harmony and unity are more important than life itself. The love the Chinese people have for our country, especially our youth, is something Americans cannot comprehend. So the idea of China and the US running the world together—the G2 concept—was rejected by Americans from the beginning. Now, even if the Americans want to pursue that path, it is too late. The train has already left the station.

» China will form an alternative economic and political system outside of the Western world,

and the only way the US can survive is by cannibalizing its own allies and vassals. 

We are witnessing the collapse of the entire Western world. « 

 Lu QiYuan, Geopolitical Economist.

The US provoked the Ukraine war in an attempt to regime-change Russia, turn it into a US proxy, and surround and contain China. China foresaw this, which is why Xi Jinping and Putin met just a few weeks before the Ukraine war and signed a “no-limits partnership” against NATO expansion. From the perspective of Chinese elites, NATO is merely an imperial tool for US power projection. The strategic rivalry between China and the US is no longer just a competition between two countries, but between two ego systems. It is no longer China trying to bargain with its unipolar master under the United States’ global hegemonic roof. Instead, it is a competition between two separate, independent powers. The competition is now between the US-dominated Western power ego system and the China-led new ego system.

Within this Western-led ego system, when the biggest player—the United States of America—can no longer absorb nutrition from its Global South economic vassels and satellites, when it can no longer consume the energy it requires to survive from the East (i.e., China), the only way it can survive is to consume energy and nutrition from its own allies and vassals. And the first set of allies and vassals to fall victim to US cannibalism will be Europe, Japan, South Korea, and Taiwan. 

 

 

» The first set of allies and vassals to fall victim to US cannibalism 

will be Europe, Japan, South Korea, and Taiwan. «

This trajectory has been in motion since 2012, when China partially detached its currency from the US dollar, when the Obama administration began to aggressively suppress China’s growth, and when China started its tax reform in 2014. Over the last decade, China has slowly been recreating an alternative network with the rest of the world, as the US has been pushing us out of the original structure. From now on, China will form an alternative economic and political system with the rest of the world, particularly with East Asia, outside of the Western world. By the Western world, I mean the US, Canada, Europe, and Japan—the roughly "Golden Billion" who once oppressed the Global South. Now, through China’s rise, they are forming their own ego system, separate from the original Western-centric structure.

 

The competition and rivalry between these two ego systems mark a dangerous era for the world, because we are talking about the transfer of energy from one system to another. If this is mishandled, it could lead to the destruction of both systems. The creation of this new world system is incomplete because the financial and monetary system is incomplete. And finally, we are witnessing the integration, not the disintegration, of the Western world. Not the collapse of the United States, but the collapse of the entire Western world. 

» NATO 'boss' Mark Rutte didn't say a single word.«

 

Perhaps we should credit the new president of the United States, Donald Trump, for accelerating this process. The drama in the Oval Office between Trump and Zelensky delivered the fatal blow to Western unity. Following Trump’s tariff on Europe, we will witness the collapse of the economic and political systems of the Western-led world order. What we are familiar with is the collapse of the Soviet Union. This time, it is the collapse of the West.

 

This is the principle of capitalism, like the law of physics. The United States does not love or hate Ukraine. The goal has always been to drain Europe’s resources. This is why so many so-called intellectuals and political experts in Europe, Canada, and Taiwan are shocked by the current events, like naive kindergarten children, saying things like, "Our Papa, the United States, is abandoning us." But let me tell you this: do not be shocked, because this is only the beginning. Soon, they will be horrified by what is to come: "Our Papa is going to devour us."

Quoted from:
Lu QiYuan (March 15, 2025) - Trump is sacrificing its allies to save the US dollar. (video; presented by Awakening Richard)

 

» Now, the most important thing: What to do with the West? «
Civilization States and the Multipolar World Order.

Alexander Dugin, 2023.

 

See also:

Thierry Meyssan (March 12, 2025) - Trump Managing the Collapse of the American Empire.

Jim Bianco (February 13, 2025) - The ‘Mar-a-Lago Accord’ Chatter Is Getting Wall Street’s Attention.

The US-China Competition in Southeast Asia | Jin Canrong

The US-China competition is going to be a long-term rivalry, and one shouldn't expect immediate outcomes. It consists of domestic competition, in which both countries will try to improve the competitiveness of their economies and the efficiency of their governance. It also consists of relationship-informed competition, where both countries will try to win favor with other nations during this process.

 Jin Canrong, Professor and Associate Dean of School of 

International Studies at Renmin University of China.

To me, the highlight of this competition will occur in Southeast Asia. The American strategy tends to create conflict and tension around China, fostering unrest and stirring up trouble, motivating countries like the Philippines and India to escalate tensions with China. Additionally, the US will use many NGOs to incite color revolutions in the area, including Southeast Asia, South Asia, and Central Asia. Even if these NGOs do not succeed in overthrowing governments, they can still create disturbances and interrupt China's rise. This is a favored geopolitical strategy of the US. In addition, the new $1.6 billion congressional bill passed to support the media demonization of China—what I would call "dog food for social media"—is a well-known tactic that the US has been continuously using against its geopolitical rivals.

 » Southeast Asian countries need industry to boost their growth, and China will be their biggest investor. 

These countries also require infrastructure development, which China can provide. China's financial capabilities 

are well above those of its Western counterparts when it comes to foreign investments. «

It's all part of the grand competition, and we are accustomed to it. The Chinese government cares greatly about Southeast Asia. We often express our desire to establish a community of shared future with Southeast Asian countries. The economic relationship with Southeast Asia has been quite positive in recent years, and the political relationship is also generally healthy, aside from the situation with the Philippines. Almost all Southeast Asian countries were originally colonies of the West, so the cultural and historical influence of Western powers over the region still exists today. There was an organization called the Southeast Asia Treaty Organization (SEATO), founded back in 1954. Its primary goal was to prevent the spread of communism during the Cold War. This can also be seen as part of a broader coalition against China led by the United States. Thus, the US has some advantages over Southeast Asian countries, at least due to recent history, particularly because China was too weak to project any significant power in the past.

Of course, I believe China's influence is catching up to that of the US in the region. To begin with, we are their neighbors, while the United States is far away. Secondly, our economic ties with the region are much stronger than those of the US. Finally, I think the majority of Southeast Asian countries agree with the Chinese style of non-interventionist foreign policy. In recent months, research and polls conducted by organizations in Singapore and Australia have shown that China's influence over the region is improving and has surpassed that of the United States in some countries. The magazine "Foreign Affairs" has also expressed concern that the US is losing its influence in the region. 

» The US economy is not prepared for global war. We are broke. «  

— Peter Schiff, October 2, 2024.

From my point of view, I believe the current situation is a deadlock—50-50. It's hard to say who is really leading in the region: China or the US. Again, the polls can sometimes be deceiving; they might not provide an accurate picture of what's really going on and can change quickly due to ongoing events. Nonetheless, I believe China is going to overtake the US in terms of influence over Southeast Asian countries in the near future. I believe this is a trend that is difficult to reverse. China has a large and expanding industrial sector, which often carries a spillover effect. Many Southeast Asian countries need industry to boost their growth, and China will be their biggest investor. These countries also require infrastructure development, which China can provide. Additionally, China's financial capabilities are well above those of its Western counterparts when it comes to foreign investments. 

I still see the US as the sole superpower on this planet, but what we are witnessing is that many regional powers are on the rise. In fact, I find it amusing that the majority of Chinese scholars today still consider the US to be the sole superpower. However, many of my foreign colleagues disagree with me. When I traveled to Africa recently, many people there told me that there are currently two superpowers in the world: China and the US. Within the Chinese intellectual community, we do not yet see China as a superpower. That being said, I believe we are entering a bipolar world, particularly in Asia and Southeast Asia, although it is important to note that there are also other strong regional powers. If I refer to it as merely bipolar, our friends in India might take issue with that description.

Quoted from:

Jin Canrong (October 1, 2024) - US-China Competition in Southeast Asia. (video) 

Israel’s Reckless Pager Operation: Who Can We Trust And Rely On? | Shen Yi

I've been studying international relations and politics for decades, and I'm shocked by this pager attack in Lebanon. This is not something a normal country would do; it's way past the moral red line of international norms. What we're looking at is a commercial electronic device, the pager, being modified into a military-style mini-grenade. Even though the operation targets Hezbollah members, the action is equivalent to igniting several cluster bombs in a market populated with Hezbollah members, their families, and other innocent civilians.

 » This is truly evil and shocking ... they've proven themselves willing to do outrageous, immoral things. «

Shen Yi, Director at Research Center for the Governance of Global Cyberspace, Fudan University.

 

The psychological effect of this operation is similar to the earliest Batman movie, where the Joker randomly poisoned hygiene products to create chaos in Gotham City. This isn't even using the pager to collect intel and destroy evidence. This can be considered a mass terrorist operation. It's like putting poison in bottled water and exporting it to your enemy city, expecting enemy soldiers to drink it, and disregarding innocent victims, oh well, sucks to be them.

 » Children lost their eyes while playing in the street. Mothers lost their limbs while shopping in a mall.
Doctors suffered severe injuries while driving to a hospital. This is horror and cruelty beyond imagination. «
China representative to the UN.

Assuming Israel's involvement, considering their current strike against Lebanon, there are two possibilities for this mass bombing. Either the bomb was installed during manufacturing in Taiwan, possibly through a joint operation between Taiwan and Israel, or the middleman modified the device. In China, Jewish people are considered the smartest and most cunning of all the peoples on this planet. Modifying this device into a bomb and activating it in mass volume is truly evil and shocking. However, I also consider this operation stupid and reckless, ignoring consequences and hiding behind the United States. The operation against Iran's nuclear enrichment facility might be within the rules of engagement, but this pager bombing is unacceptable. The United States swapped out hospital devices before the operation, showing awareness. The United States, Israel, and Taiwan governments remain quiet. 

 

How can we trust products from these regions in the future? This has impacted global supply chain trust. China now understands why the US considers Huawei cell phones and network devices national security issues - because they think China is as evil and immoral as they are. The problem isn't technical feasibility; today's technology makes it easy. The problem is who crosses the moral red line. Israel, backed by the United States, has shown willingness to cross it. This is a dangerous psychological barrier. 

 

How will China assure consumers of safety when buying US and Israel products? Shouldn't these products be inspected for tampering, with the US and Israel paying additional costs? This isn't unfair competition; they've proven themselves willing to do outrageous, immoral things. China can't wait until 5,000 Apple cell phones blow up to set up security. Considering the US views China as its biggest rival, China needs its own products, supply chain, communication, and banking systems. It's no longer about Chinese or US-made CPU preferences; it's about foreign entities willing to weaponize devices against you. It's not about faster cell phones; it's about safety. Maybe the quality of some Chinese products still lag behind, but we can tell the world we won't make products that explode intentionally. That should be a new standard. 

 

This chain of events shows that peace, safety, stability, and prosperity - elements of a great society - are rare globally. Many Chinese took these for granted. I believe China should lead promoting peace, growth, and stability around the world.

Quoted from:
Shen Yi (September 21, 2024) - Chinese response to Lebanon Pager Attack. (video)