Newsletter By 2024-03-08
In China both today and in the future, very few people in rural areas are still engaged in food production. As the population aging accelerates, and farmland diminishes, with no willing to keep farming, where will China's food come from? The past hope rested on imported food. The imminent issue lies in the fact that the key support factors that have historically bolstered the strength of the Chinese currency exchange rate are waning. Robust demand in the global market, China's export of goods, foreign confidence, and China's private economy, among others, are declining. There are also geopolitical issues between China and other grain-producing countries. China's food crisis is like a time bomb set to explode, in the opinion of
White Mountain, geopolitical researcher at ANBOUND.
>>When Europe and the U.S. begin to retreat, the Chinese EV industry appears even more prominent, said
He Jun, Director of Macro-Economy Research Center and Senior Researcher at ANBOUND. It is crucial for these EV companies to closely monitor changes in the situation and understand the nature and extent of the withdrawal from the EV sector. In addition, new energy vehicles cannot rely on policy-driven subsidies indefinitely. As subsidies become increasingly unsustainable in various countries, the EV sector will be in inevitably significant adjustments ahead.
ANBOUND’s founder Kung Chan has been predicting since the second half of 2023 that EVs will enter a downturn starting in 2024.
>>The continued increase in gold prices amid the Federal Reserve's tightening of monetary policy and the strengthening of the USD is noteworthy. The weakening of USD credit can be seen as a significant reason for the decoupling of gold from the currency. Given the spreading weaponization of the USD by the U.S. and Europe to impose financial sanctions on other countries, central banks, and international traders purchasing gold do so not only to maintain portfolio stability or currency stability but also to mitigate the political risks associated with the USD. As we previously discussed, the geopolitical marginalization of the international monetary system can be considered a long-term factor in the decoupling of gold from the USD, noted
Wei Hongxu, senior economist at ANBOUND.
>>The global understanding of white hydrogen remains to stay in an early stage, with many unresolved issues in exploration, technology, and application. White hydrogen, as a potential but minimally developed clean energy source, possesses advantages in hydrogen production pathways such as zero carbon dioxide emissions. It is unlikely to achieve commercial production in the short term due to factors such as uncertain reserves, early-stage technology, and high extraction costs. It is even less likely to significantly change the current situation of hydrogen energy and the overall new energy supply, writes
Xia Ri, industry analyst at ANBOUND.
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