China's Inflation at Just 0.2%

The central bank has released the latest loan LPR, lowering the loan interest rate by 10 basis points.

Since the United States began raising interest rates last year, we have been moving in the opposite direction.

This latest reduction in loan interest rates is just another demonstration of our confidence in lowering interest rates.

The CPI for the previous month was only 0.1%, and the CPI announced this month is merely 0.2%, while the U.S. CPI is over 4%, which is the confidence we have.

Last year, the annual inflation in the U.S. was over 8%, peaking at 9.1%, while our annual CPI was only 2%.

The Federal Reserve is eager to bring down U.S. inflation to 2%, but repeated interest rate hikes have been ineffective.

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Eventually, under domestic economic pressure, the Fed had to stop raising interest rates in June.

However, we are still on the path of comprehensive interest rate cuts, and continued cuts will inevitably be reflected in the economy.

The retail sales total for the first five months has risen year-on-year again, indicating that consumption is recovering.

The economic trends of China and the U.S. are now completely different.

Given predictions that China's economic growth will far exceed that of the U.S. in the coming years, some forecasts suggest that China will become the world's largest economy by 2030.

Becoming the world's largest economy holds profound significance for our country.

First, the United States has been the world's leading nation since World War II, firmly holding the position of global hegemon.

Many countries have followed the United States' actions, which has allowed the U.S. to reap the benefits of being number one.

On this basis, the U.S. has repeatedly harmed the interests of other countries to satisfy its own interests in order to maintain its hegemonic status.

If China's GDP surpasses that of the U.S. by 2030, many countries will realize that the U.S. is not the only dominant power, leading to a major reshuffling of alliances.

When the U.S.'s deterrence power declines, countries will naturally no longer blindly follow the U.S., reducing the benefits the U.S. enjoys and further weakening its comprehensive national power.

However, due to our large population, there is still a significant gap in per capita GDP, which is a problem we need to work on in the future.

As the world's largest economy, the U.S.'s per capita GDP is also formidable, reaching over 70,000 U.S. dollars last year.

The standard line for per capita GDP in developed countries is 20,000 U.S. dollars.

With a population of 1.412 billion, if calculated based on this figure, by 2030 our per capita GDP would be 25,400 U.S. dollars.

This figure has already surpassed the standard line of developed countries and is very close to that of middle-developed countries (although this data does not consider the future increase in standards).

However, due to uneven regional development in our country, the per capita GDP across different regions will also vary significantly.

We have only recently eliminated poverty, and we still need to continue working hard economically.

On the other hand, we should not underestimate ourselves, thinking that everything in the U.S. is better than us.

In recent years, the high inflation in the U.S. has directly impacted the lives of ordinary American families.

Every country faces economic ups and downs, but it is clear that the U.S. is ill-prepared for the impending deep recession, with ordinary residents' savings far from sufficient to cope.

The U.S. is inherently a country with a low savings rate.

In the past two years, the amount of residents' savings in China has been continuously increasing.

However, unlike China, the U.S. focuses more on consumption and does not place much emphasis on savings.

Moreover, due to high inflation and high prices in the U.S., although American residents have high incomes, after deducting monthly expenses, there is not much left.

Many American residents are even spending beyond their means, which makes saving even more difficult.

This is also why the U.S. media is particularly envious of our low inflation, and we should take advantage of this economic advantage to continue narrowing the gap with the U.S.