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JPMorgan CEO: over the past 20 years, China has implemented a more comprehensive economic strategy while the West slept

Conceiving a new Bretton Woods among like-minded countries [without China] would be a "good idea," he argued.


According to the U.S. magazine "Fortune," JP Morgan Chase CEO Jamie Dimon (Jamie Dimon) released his annual letter to shareholders on Monday, the 8th.


Speaking about creating a comprehensive economic security strategy to strengthen the U.S. economic position, he argued that the Western world has fundamentally underestimated China's growing strength and potential threats.

He said that China has focused comprehensively and strategically on national economic security issues, while the West has been "asleep at the wheel," and that there is now an urgent need to address "spilled milk."


Screenshot from the official website of JPMorgan Chase

"In our 2023 Annual Report, our Chairman and CEO reflects on the past year and the opportunities that lie ahead for the firm." Read the letter.

Over the past 20 years, China has pursued a more comprehensive economic strategy than ours." In his letter, Dimon said China has grown into a "potential superpower" whose influence rivals that of the United States.


Dimon also echoed the argument of some anti-China U.S. politicians that we need to free ourselves from dependence on China in the areas of rare earths, 5G infrastructure semiconductors and others.

Damon also argued that the United States may be entering its most dangerous time since World War II, with rising global geopolitical tensions and polarized U.S. domestic politics, and that U.S. global leadership is being challenged.


He argued that the United States should lead and bring the Western world together to strengthen and rebuild the international order, such as by envisioning a new Bretton Woods system.

"I hope I never read a book about 'how the West lost its way,'" he said. Dimon warned, "If the Western world slowly collapses in the coming decades, it could be the consequence of our inability to respond effectively to major global economic challenges."


In his letter, Jamie Dimon writes that geopolitical tensions are one of his biggest concerns.


He argues that too much attention is paid to monthly inflation data and Federal Reserve interest rate changes, while not enough attention is paid to long-term geopolitical and political risks.

"A small change in interest rates today may not have as big an impact on future inflation as many believe." But the impact of geopolitical and economic forces is enormous and unprecedented. These impacts may not be fully understood until they fully manifest in a few years."


Damon said that in an increasingly complex international situation, there is a nontrivial interrelationship between domestic and foreign economic policies, so it is important to be at the center of this, as well as to set one's own policy strategy. Speaking about foreign economic policy for national economic security, he focused on China.


Damon said that governments and businesses in the Western world have "fundamentally underestimated China's growing power and its potential threats," and that China has established itself as a "potential superpower" and focused globally and strategically on its own economic security, while the West has been "asleep at the wheel."


"Over the past 20 years, China has pursued a much more comprehensive economic strategy than ours." He added that China has managed to develop into "the first or second largest economy in the world" according to various measures, and that those who question China's economic development are not clear about its current economic priorities.


He argued that the United States ignores its growing dependence on China in three ways: first, companies over-rely on China as the only link in their supply chains, resulting in reduced resilience. This dependence usually involves consumer goods, such as clothing and shoes, that are less "critical or complex"; "most importantly," the United States cannot afford to rely on any potential rival, including China, for materials critical to national security, such as rare earths, 5G and semiconductors, penicillin, and essential drug materials; and "most importantly," the United States cannot afford to rely on any potential rival, including China, for materials critical to national security. The third point is to ensure that the United States maintains its leadership in key areas such as electric vehicles, artificial intelligence, and renewable energy and does not surrender its vital resources and capabilities.


According to Damon, the Inflation Reduction Act, Chip Act and so on, although they have triggered dissatisfaction among some U.S. allies, are correct economic policies, but at the same time, he stressed that these policies should be "limited and targeted."


He also argued that the United States should "define these issues appropriately and narrowly" and then "take unilateral action when necessary."


All these problems are solvable, even if they take time and effort." He wrote, "Don't cry over spilled milk, we will solve it."


Considering the size of China, Dimon added that the United States should be tough on China, but should also remain engaged with it.


He further stated, "Our relations with China are likely always to be complex and complicated, and the ongoing wars [in the world] make them even more so, which requires us to remain engaged [with China]-thoughtfully and fearlessly. At the same time, we need to build and implement our own comprehensive and long-term economic security strategy to secure our position. I believe that mutual respect and strong and consistent engagement are best for our countries and the rest of the world.

The self-proclaimed "passionate, patriotic, free-market capitalist" CEO also boasted in his letter that the U.S. remains the so-called "bastion of freedom and democracy" in the Western world, a "shining beacon of hope for the citizens of the world," and a presence that draws in millions of admirers when it makes its presence felt in the Western world, "and indeed for many other countries there is no real or better alternative to the United States." The United States remains the so-called "bastion of liberal democracy" in the Western world, a "shining beacon of hope for the citizens of the world," a presence that draws in the Western world and attracts millions of admirers, and that "the fact is that for many other countries there is no real or better alternative to the United States." The only other potential superpower is China," Dimon wrote.


But he also acknowledged that the United States is "navigating a complex and turbulent world," with events such as the Russia-Ukraine conflict and the Israeli-Palestinian conflict challenging its global leadership role externally by other countries and internally by a polarized electorate at home.


"The risks posed by recent events are probably greater than those that have occurred since World War II - and we must not take them lightly." Damon said the Western world can no longer afford to maintain a false sense of security at this critical juncture in history, when times are so volatile and the United States cannot "go it alone," and called on the Western world to find ways to put aside differences and unite to respond to the crisis.


But Damon added that U.S. leaders must always ensure that "America comes first." This is because "only the United States is fully capable of leading and uniting the Western world."

He also proposed in his letter that the rules-based international order established by the Western world after World War II is clearly under attack by outside forces, that it has been weakened to some extent by its own failures and its inability to keep pace with an increasingly complex world, and that the United States needs to bring together a group of "like-minded" leaders to revitalize the global architecture.


Conceiving a new Bretton Woods would be a "good idea," he argued. If the Western world were to slowly collapse over the coming decades, Damon warned, this could be the consequence of the United States' inability to respond effectively to major global economic challenges.

He concludes by writing, "I hope I never have to read a book about 'how the West lost its way.'" The book would say: failures in Ukraine and the Middle East have led to increased bickering among allies and weakened military alliances. This has accelerated the fragmentation of the Western world, dividing countries into different economic spheres, each trying to protect its economy, trade and energy. The U.S. economy weakened, eventually leading to the loss of its status as a reserve currency. The United States, mesmerized by populism and partisanship, shackled by bureaucracy and lack of willpower, has failed to focus on leading and saving the Western world. The enemy is within, we just don't realize it in time. I would like to see a book on 'How the West Won,' in which America faces the challenge as it has done at other tumultuous times in its history."






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