"Ms. Lin Fangning, Hong Kong is a global financial center. To be honest, there is no need to be a dog for money."
Chen Feng said calmly.
"Mayor Chen, I admit that what I want to discuss with you this time is a transaction that cannot be revealed. However, is calling someone a dog too harsh?"
Lin Fangning argued earnestly.
She had heard before that Chen Feng was a clear stream in China's political arena. Meeting him in person today confirmed it.
"Ms. Lin Fangning, to be honest, I am being quite considerate. This time, you want Hong Kong and Mingshan City to jointly break away from the South American currency trading system. If this isn't being a dog for the West, what is it?"
Chen Feng said without politeness.
"Mayor Chen, the South American trading system lacks strong military backing. This system, which aims to break away from the US dollar, is destined to fail. Why lose a great opportunity to make money for a system that is doomed to fail? I have received clear information that if our two super cities, Hong Kong and Mingshan City, officially break away from the South American currency trading system, the West will make astronomical investments in us..."
Lin Fangning continued to argue.
"Ms. Lin Fangning, if I remember correctly, you graduated from Harvard University's Kennedy School of Government in International Relations, right? With your intelligence and knowledge, you should be able to see at a glance what the West is trying to do with this transaction. Since you know the West wants to eliminate the threat to the US dollar's hegemony, shouldn't China support it instead of cooperating?"
Chen Feng retorted with a serious expression.
He was beginning to feel a growing aversion to Lin Fangning, the mayor of Hong Kong.
While other parts of China were still market-oriented, they hadn't completely plunged headfirst into greed.
However, Hong Kong, judging by Lin Fangning's actions and thoughts, had clearly gone all-in for money.
"Mayor Chen, Hong Kong is a global financial center. In China, no one understands the West's subtle intentions better than Hong Kong. To be honest, I never expected someone outside of Hong Kong's political sphere to see through the West so thoroughly. Indeed, the West is investing heavily to lure Hong Kong and Mingshan City into secretly breaking away from the South American currency trading system to eliminate threats to the US dollar's hegemony. As a Chinese person, I shouldn't have any thoughts of abetting evil. After all, the enemy of my enemy is my friend. But, Mayor Chen, have you ever considered that for so many years, the Euro has failed to replace the US dollar's position? Decades ago, a war in the Middle East not only brought down the Euro but also that anti-American country. As for the Yen, it has long since fallen before the US dollar. Do you think South American currencies can rival the US dollar? Any intelligent person knows this. Why should we foolishly do impossible things? Why not take this opportunity to make a fortune?"
Lin Fangning advised Chen Feng.
"Ms. Lin Fangning, if the situation were as you described, I would agree by playing dumb. But, think carefully, is the West really only targeting the South American currency system this time?"
Chen Feng countered.
"Mayor Chen, what do you mean? Are you saying there's a hidden agenda?"
Lin Fangning was taken aback.
"There is indeed a hidden agenda."
Chen Feng nodded slightly.
"Mayor Chen, I graduated from Harvard University with a degree in International Relations. International relations is my forte. To be honest, when the West approached me about this matter, I secretly studied it for a week. Frankly, I couldn't see that the West was targeting the South American currency system at China."
Lin Fangning replied somewhat dazed.
"Ms. Lin Fangning, although you are a talented graduate of Harvard University's International Relations program, you are not a talented graduate in economics. If you were, you would realize that the South American currency trading system uses the Chinese Yuan as its foreign exchange reserve. South American countries have been severely bullied by the United States over the years, which is why they want to establish a South American Economic Union to resist the US. The most crucial step is to establish a union currency. Individual American countries cannot contend with the US dollar. For the union currency to be strong, it needs a large amount of foreign exchange reserves. Most countries' foreign exchange reserves are in US dollars. For the South American Union to issue a union currency, it was originally meant to counter the US dollar, so it's impossible to use the US dollar as its foreign exchange reserve. Therefore, the Chinese Yuan is their best choice. To be frank, after decades of development, the Chinese Yuan is now on par with the US dollar. As early as last year, the Chinese Yuan surpassed the Euro to become the world's second-largest currency, and the gap with the US dollar is shrinking."
Chen Feng explained patiently.
"Mayor Chen, I've heard you graduated in computer science. How do you know so much about economics?"
Lin Fangning asked with a puzzled expression.
"Do you want to hear the truth or a lie?"
Chen Feng replied with a smile.
"Of course, I want to hear the truth."
"The truth might be a bit hurtful. Are you sure you want to hear it?"
Chen Feng continued with a smile.
"It's fine."
"The truth is, I am different from you. The main reason you became the mayor of Hong Kong is not that you are a talented graduate of Harvard University. To be honest, a talented graduate of Harvard University in International Relations is not qualified to be the mayor of Hong Kong. The most important reason you became the mayor of Hong Kong is that your Lin family is the wealthiest in Southeast Asia. China's high leadership and Hong Kong need your Lin family's powerful economic resources, which is why you became the first female mayor of Hong Kong. As for me, I don't have such a strong background. I can only rely on my own tangible economic capabilities to become the mayor of the direct-controlled municipality of Mingshan City. I didn't know much about economics before. Fortunately, along the way, I have had the help of many women: Aunt Xue, Cheng Lu, Ye Meizi, Li Hongling... With their help, my economic capabilities grew from nothing to something, from weak to strong."
Chen Feng explained truthfully.
He felt a wave of emotion.
Back when he graduated from university, he was dumped by his ex-girlfriend Zhu Hangyi because he was poor. Who would have thought that life was so ironic? He had indeed been abandoned by women, but the people who had helped him the most in the first half of his life were precisely women.
"Can economic ability be cultivated?"
Lin Fangning asked, seizing the opportunity.
"It's very difficult to cultivate."
Chen Feng replied truthfully.
This was not mere affectation, but genuine heartfelt words.
The business world, like the political arena, is something that ordinary people cannot truly grasp.
One wrong step, and one can be overwhelmed by the business or political world.
"Since it's so difficult to cultivate, how did you transform from a computer science major who didn't understand economics into an economic expert?"
Lin Fangning asked with a puzzled expression.
"I was forced into it."
Chen Feng replied with a faint smile.
"Forced into it?"
"Yes, forced into it. Back then, I was a university graduate dumped by my ex-girlfriend. Because I graduated from a second-tier university, it was difficult to find a good job. With the help of my uncle, I got a position as a driver for a deputy town mayor. From that moment on, I secretly vowed that I would not waste this hard-won opportunity and must work hard to make a name for myself in the political arena. Later, after spending a long time in politics, I felt that there were too many problems in China's political arena. If it didn't change, the common people at the bottom of China would continue to suffer. As the saying goes in China, 'When the dynasty prospers, the people suffer; when the dynasty falls, the people suffer.' As someone from the top stratum of the common people, I wanted to change this tragedy. So I secretly vowed that I would not only make a name for myself in politics but also reach the highest level of China's political arena to change the tragedy of the common people suffering for thousands of years. Because of this extraordinary ambition, I had to learn economic capabilities. Modern China's political arena is no longer like ancient China's. In ancient times, flattery was enough. In modern China's political arena, to make a mark and reach the highest level, one must be a master of economics. Of course, besides having strong motivation, I also have a bit of talent to grow from an economic novice to a minor economic expert."
Chen Feng explained with determination.
"Mayor Chen, until today, I truly understand you. I have gained a lot from your words. However, I still want to say this: regarding the South American currency trading system, shouldn't we not be so pedantic?诚然, the collapse of the South American currency trading system will severely affect the international status of the Chinese Yuan. But the problem is, even if Hong Kong and Mingshan City refuse the West, the South American currency trading system will still collapse. The US dollar's hegemony is far beyond what you and I can imagine. Moreover, in recent years, the Chinese Yuan has developed strongly and is catching up to the US dollar. Therefore, the US dollar's desire to stifle the South American currency trading system this time is becoming increasingly intense. Although we are both mayors of Chinese direct-controlled municipalities and possess extraordinary abilities, we are still insignificant in the face of the powerful US dollar hegemony. There is no need to attempt the impossible, like an egg hitting a rock. It is better to follow the trend and make a fortune."
Lin Fangning expressed her thoughts.
Lin Fangning came from a family of merchants. From childhood, her eyes were only on money. In the face of money, Lin Fangning could abandon many principles.
Especially when adhering to principles would not lead to success, she would lean more towards making money.
"Ms. Lin Fangning, your thinking is outdated."
Chen Feng said calmly, without getting agitated.
"My thinking is outdated?"
Lin Fangning was taken aback.
She was the mayor of Hong Kong, which was the world's financial center. The people of Hong Kong and Hong Kong's political circles were exposed to advanced global ideas daily. How could her thinking be outdated?
"Yes, your thinking is outdated."
Chen Feng replied calmly.
"Reasons. No exaggeration, if my thinking were outdated, do you think I could have been the mayor of Hong Kong for so many years?"
Lin Fangning retorted.
"Ms. Lin Fangning, you've misunderstood. When I say your thinking is outdated, I don't mean it's literally outdated. Rather, you don't think things through thoroughly enough. For ordinary people, not thinking things through thoroughly isn't a big problem. However, you are the mayor of Hong Kong, a high-ranking official. If you don't think things through thoroughly, that is indeed backwardness."
Chen Feng explained patiently.
"Where am I not thinking thoroughly?"
Lin Fangning asked, utterly confused.
"You haven't understood China."
Chen Feng replied unhurriedly.
"I haven't understood China? That's interesting. Continue."
Lin Fangning asked with great interest.
Throughout her life, although she had interacted more with British people, she was Chinese herself. How could she not understand China?
"If you understood China, you would know that the Chinese Yuan can now contend with the US dollar."
Chen Feng said calmly.
"The Chinese Yuan can contend with the US dollar? How is that possible? The US dollar is freely convertible worldwide, but the Chinese Yuan is not. Tell me, how can the Chinese Yuan contend with the US dollar?"
Lin Fangning asked, completely bewildered.
"That's why you don't understand China. Let me put it this way: the Chinese Yuan is not incapable of being opened up, nor is it unable to achieve worldwide free convertibility like the US dollar, and remain stable. The main reason is that the Chinese Yuan does not *want* to be opened up."
Chen Feng continued calmly.
"Mayor Chen, to be honest, regarding the internationalization of the Chinese Yuan, I have asked many world-renowned experts, including many mayors of Chinese direct-controlled municipalities, and their views are the same as mine: the reason the Chinese Yuan has not been fully liberalized is that its strength is insufficient. You are the first person to say that the Chinese Yuan is not being opened up internationally because it *doesn't want* to be internationalized. This viewpoint is too forward-thinking, too profound..."
Lin Fangning said softly.
If it weren't for Chen Feng being the youngest mayor of a direct-controlled municipality in China, Lin Fangning would have wanted to say that his idea was pure nonsense.
"Ms. Lin Fangning, it's normal that you don't understand the high-level strategic arrangements for the Chinese Yuan. If a country's strategic arrangements are easily seen through, then the strategy is a failure. To be honest, the reason I could guess China's high-level strategy for the Chinese Yuan is that I have been studying the development of the Chinese Yuan for the past few decades. After decades of research, I have found that China's high leadership is still full of economic wisdom. China, based on the famous Triffin's "trilemma of international currency," summarizes that a currency has three properties: independence (the government's independence in formulating monetary policy), stability (maintaining exchange rate stability), and convertibility (free exchange of currency). These three cannot be achieved simultaneously; only two can be chosen. According to the trilemma, for the Chinese Yuan to be internationalized, China must allow the Chinese Yuan to be freely exchanged, or it must abandon the pursuit of monetary policy independence, or it must abandon the pursuit of exchange rate stability. Firstly, China cannot abandon monetary policy independence, otherwise, it would abandon monetary sovereignty, and monetary sovereignty is an important component of national sovereignty. National sovereignty has the supreme value ranking for China. Secondly, China cannot abandon the pursuit of exchange rate stability for the Chinese Yuan. 'Stability overrides everything' is China's most unshakeable political concept, and exchange rate stability is directly related to national economic stability and social stability. The reason China is persistent about monetary sovereignty is to pursue national stability. Since China can neither abandon monetary independence nor stability, it has no choice but to sacrifice the convertibility of the Chinese Yuan – it cannot bear the risk cost of free exchange of the Chinese Yuan. Since the Chinese Yuan cannot be freely exchanged, it naturally cannot play the role of an international currency. If China allows a large amount of Chinese Yuan to be deposited overseas, and the overseas market starts shorting the Chinese Yuan, China must use a large amount of foreign exchange reserves to absorb it to maintain the exchange rate stability of the Chinese Yuan. Since the Chinese Yuan is already an international currency, China will naturally not have much foreign exchange reserve and naturally cannot afford to absorb it, and the exchange rate of the Chinese Yuan will collapse. This is unbearable for China. For a domestic currency to be internationalized, one must consistently export its own deficits, resulting in a deficit in the balance of payments, with continuously growing deficits and high foreign debt, which is unbearable for most countries. Because your foreign debt is too high, it might lead to government bankruptcy, people will lose confidence in your prospects, and your currency will depreciate. In this situation, even if China wants to export its deficits and use its depreciating currency to import goods and services from other countries, who would be willing? Based on these important factors, China is unwilling to liberalize the internationalization of the Chinese Yuan."
Chen Feng leisurely gave Lin Fangning a lesson in monetary knowledge.
"Mayor Chen, after listening to your explanation, my economic knowledge has greatly increased. Before, I always wondered how such a young man like you, starting as a mere driver, could become the mayor of a direct-controlled municipality. Such a meteoric rise is not only unparalleled in China but also in the entire world. It turns out that you have incredible economic thinking. In today's society, whoever has incredible economic thinking will naturally thrive in the political arena."
Lin Fangning exclaimed unconsciously, praising Chen Feng.
"Since you understand China's currency strategy, you should understand the importance of the South American currency trading system to the Chinese Yuan. To put it bluntly, China has achieved the internationalization of the Chinese Yuan in a clever and secure way by conducting large-scale local currency settlements or dual currency settlements with the European Union, Japan, South America, ASEAN, oil-producing countries, etc. If the South American currency trading system is destroyed by the West, then China's internationalization of the Chinese Yuan will lose a huge first-mover advantage. Think about it, with such a massive national interest at stake, can the minor interests of Hong Kong and Mingshan City be abandoned?"
Chen Feng said earnestly.
"Mayor Chen, your words today have been very educational. I am also willing to stand with you to counter the West's conspiracy against the South American currency trading system. However, the problem is that if we explicitly refuse the West, they will definitely try to strangle Hong Kong and Mingshan City. If that happens, the situation will be very critical. Remember how China's Huawei company was almost destroyed by the West more than a decade ago?"
Lin Fangning said with concern.
"If it were in the past, it would indeed be a big problem. However, after decades of China's 'hiding its capabilities and biding its time,' it is no longer the same as before. We can now confront the United States head-on."
Chen Feng said with ease.
"Mayor Chen, did I hear you correctly? China now has the strength to confront the United States head-on?"
Lin Fangning was stunned.
"Don't doubt it. It's true. China absolutely has the strength to confront the United States head-on. Think about it, China's GDP is about to surpass that of the United States. In quantum computing, chips, interstellar fields... and many other areas, China has surpassed the United States, and can fully confront the United States."
"Mayor Chen, are you suggesting that if the United States aggressively suppresses the South American currency trading system this time, the Chinese government will confront the West head-on?"
Lin Fangning asked excitedly.
"Miss Lin Fangning, you still don't understand China."
Chen Feng said with a smile.
"What do you mean?"
Lin Fangning became increasingly perplexed.
Every word this middle-aged man uttered was hard to fathom.
"China can now be on par with the United States in many fields. However, China's character is not one of ostentation. The doctrine of the mean has been the way China has adhered to for thousands of years."
Chen Feng said unhurriedly.
"The doctrine of the mean?"
"Yes, the doctrine of the mean. This time, the West is plotting against the South American currency trading system. Even if China knows about it, it will not openly fall out with the West."
Chen Feng explained calmly.
"Won't openly fall out? Why? The West has basically defecated on China's head this time! How can you not fall out?"
Lin Fangning asked, utterly astonished.
"This is called strategic vision, a unique strategic vision of China. For China, as long as the other party does not explicitly declare war, China will not go to war for any reason. China is an ancient country of thousands of years, and China knows well that once a war breaks out, even the best economic momentum will be dragged down."
Chen Feng said calmly.
"Mayor Chen, from what you're saying, does China already have a contingency plan?"
Lin Fangning probed.
"Strictly speaking, it's not that China has a contingency plan, but that *I* have a contingency plan."
"You have a contingency plan? What do you mean? I don't understand."
Lin Fangning was stunned.
"It's very simple. I've been a member of China's think tank for several years now. China doesn't yet know that the West will target the South American currency trading system. Once it knows that the West will target the South American currency trading system, it will definitely seek the advice of the think tank. In this way, my pre-prepared contingency plan will come into play. This is also why I am meeting you overseas during my vacation. Under normal circumstances, I do not meet people easily when I am on vacation."
Chen Feng said calmly.
"Ah? You've already prepared a countermeasure? Then... then... did you also predict that Western representative Jones would also come here?"
Lin Fangning was stunned.
She had only known that Chen Feng was capable before, but she didn't realize he was this capable.
One step forward, and he can see a hundred steps ahead!"