Dedollarization: Deepening Ties between China and Saudi Arabia

Global power scenario is changing. United States of America is no more sole superpower of the world. As on 29th November,2023 USA debt is US$ 33,835 billion, per citizen debt is US$ 100,692 and per tax payer debt is US$ 259,651. Its federal budget deficit is US$ 1,748 billion while its total GDP is US$ 27,736 billion. On 10th November,2023 Moody’s changed outlook on the government of United States of America’s rating to negative from stable. The rating agency said it expects United States’ fiscal deficit will remain very large, significantly weakening debt affordability. After the collapse of Soviet Union, America became sole superpower of the world and everybody knows that Muslims of the world had given too much sacrifices in Afghan Soviet Union War and the defeat of Soviet Union created an immense chance for United State to become a global ruler and leader. It had a chance to promote peace, equality and power sharing and to resolve the longstanding political problems like Palestine and Kashmir. Instead it fell into syndrome of power and attacked on Afghanistan and Iraq and killed millions of innocent people. Again, nature punished it and after eighteen years of war it lost in Afghanistan and drew back its forces. It lost trillions of dollars in this war and lost its credibility. Its 91% youth now refused to join US Armed forces and those who served in Afghanistan more than 51% of them suffering from depression and whether they committed suicide, want to commit suicide and did not remain normal.
Being the global superpower United States of America instead of promoting global justice and peace it became a policeman and tried to imposed its culture, ideas and order. So, it has a long history of double standard that it pampered Israel and India ignored gross human rights violation by them and used human rights concepts as political weapons and imposed illegal, unjustified sanctions against Iran for forty years, tried to drag China into controversies dictated its friend countries like Pakistan, created terrorist organizations like ISIS interfered into the internal matters of China. Guantanamo bay, Abugharib and Bigram Airbase torture centers were created.
Now it fully backed the massacre and genocide of Palestinians by Isreal which further created distance between Muslims and United States of America and now majority of Muslims turned their hope towards CHINA AND RUSSIA. In March 2023, China’s visionary leader Xi Jinping said, “Refrain from imposing their own values or models on others and refrain from stoking ideological confrontation.” So instead of the hypocritical colonialism of America imposing their own so-called human rights concepts and using them against their political and economic opponents and ignoring their strategic allies like India and Isreal will not serve the purpose, China balanced its policies and attracted countries towards friendship with trade, investment and development.
New realities are emerging in the world. In March, 2023 China sent its diplomats to the Middle East for the first major effort to broker a peace deal between Saudi Arabia and Iran and emerged as a world leader of peace and development. These are the signs of declining American influence in the world. BRICS, African continent and Middle East is coming out of American influence.
Recent is the example of Saudi Arabia and China deal and currency swap agreement equal of US$ 7 billion which is valid up to three years. China’s central bank will reserve Saudi Riyal and Saudi bank will reserve Chinese Yuan. This is a win/win situation for both the countries but a loss for United States of America and dollar. Many countries are now challenging dollars’ supremacy and signing currency swap agreements. India and China also agreed to do trade in their concerned currencies and BRICS also agreed to do trade in local currencies. China has taken twenty-nine such deals with other countries and with Saudi Arabia it is its 30th One. It also has similar understanding with Qatar and Egypt. Brazil’s president travelled in April,2023 and signed twenty new agreements on technology, trade and agriculture.
China is the largest importer of Saudi oil and last year it exported US$ 65 billion worth oil from Saudi Arabia which is 63% of Saudi Arabia’s total export to China.
China is world’s future and when world will accept this fact the world would be more secure as there would be justice, investment, trade and power sharing not bombing, wars and weaponizing. Let us hope that Palestine and Kashmir would be independent countries and there would be global brotherhood and cooperation among Islam and other civilizations and not the clashes between the civilization.