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Chapter 41 Grain Investment

In 2038, China and the United States played the "Indian card", which meant that South Asia once again became a hot spot.

The United States' South Asian policy depends to a large extent on China's South Asian policy, because for the United States, the South Asian region is too far away and too close to China. What the United States does in India shows that by this time, the United States has not given up its strategic attempt to contain China.

After the First Indian Ocean War, China completed its strategic expansion operations in South Asia in less than ten years. It not only formally established alliances with Pakistan, but also built a strategic encirclement against India by winning over Nepal, Bhutan, Bangladesh, Myanmar and Sri Lanka. It also established a crescent-shaped military base group around India through Haoyang Port on South Andaman Island, Tanla, Myanmar, Chittagong in Bangladesh, Galle in Sri Lanka and Gwadar Port in Pakistan.

However, in South Asia, India is the only major country and the only country qualified to become a major country.

In addition to India, even Pakistan does not have the necessary land area, natural resources, population and economic foundation to become a major country. As for other countries, they do not even have the foundation for a regional power. Therefore, no matter how great China has in South Asia, it is necessary to strive for India.

In a sense, India is the key to whether China can surpass the United States.

The reason is simple: The key sign of China's surpassing the United States is social production efficiency, while China's population size is three times that of the United States, but its national consumption concept is far inferior to that of the United States. Even if the domestic consumption level reaches the level of the United States, China needs three times the overseas market of the United States, and even three times the overseas production areas of the United States. In other words, when the regional economies led by the United States have a total population of 2.4 billion, regional economies led by China need seven billion people, and China's social production efficiency can reach the level of the United States.

Of course, this is just a theoretical calculation of the value.

Because of differences in values, cultural concepts, lifestyles, etc., China needs more overseas markets, rather than overseas production areas. Therefore, when China's total population is 1.3 billion, it is necessary to have an overseas market of about twice that, that is, the total population size of regional economies led by China should be around 4 billion.

In this way, India is extremely critical.

Now, we can see that China's policy toward India after the First Indian Ocean War is that in addition to strategic containment, China is also actively expanding the Indian market. It has not suppressed India at the economic level, but has established a relatively close relationship. By 2034, India had become China's largest trading partner, and even if the region is the basis, India is second only to Southeast Asia.

More importantly, China has been actively supporting India for the past decade.

For example, between 2027 and 2034, China provided India with a loan of 1400 billion yuan to help India build public infrastructure such as schools, hospitals, water purification plants, etc., and nearly 10,000 volunteers went to remote areas of India to teach and practice medicine.

According to the official statistics released by India, by 2034, the illiteracy rate in India was 42%, a 21 percentage point lower than before the First Indian Ocean War, which is equivalent to nearly 300 million Indians getting rid of blindness in this decade, which means that more children have access to learning opportunities.

The US authorities are also very clear about the importance of India to China, otherwise the US president would not have proposed the Food Purchase Limit Act in 2038 at the risk of being impeached.

At the end of August, the day before the U.S. Attorney's Office was preparing to submit a complaint to the Supreme Court, the White House withdrew the Food Purchase Registration Act submitted to Congress. Because the bill submitted by the president has not been approved by Congress and has not officially come into effect, the federal prosecutor revoked the charge.

One day later, on September 1, the U.S. President submitted the Aid Act to Congress.

It was only then that the news media understood the intention of the US president, that is, to use the Food Purchase Limit Act to make more Americans pay attention to food issues and India, which is suffering from the food crisis. Then, through the Aid Act, it encouraged American companies and consortiums to use private capital to operate to give the surplus US food aid to India, helping India through the most difficult winter of 2038.

This move was immediately widely praised and also received support and sympathy from many Americans.

As for the real reason behind this, only the US president, as well as the companies and consortiums that benefit from it, will know it.

The essence of the Aid Act is not to provide loans to India, but to use government guarantees and mandatory measures to allow American companies to purchase food from citizens through legal means, and then use food as a weapon to help American companies explore the Indian market and expand the scale of investment in India.

To put it bluntly, it is to allow American companies to use food as strategically regulated resources to exchange it with India in equivalent barter.

You should know that before this, all grain trades with a scale of more than 500,000 tons would have to be approved by Congress.

With this bill, American companies can use the US dollar issued by the Federal Reserve to purchase grain at home, and then use grain as a means of payment to purchase high-quality industries in India.

Obviously, in 2038, food will definitely be more popular than the US dollar.

The reason is very simple. Globally, food is a strategically controlled resource. Even if there is US dollar, it is difficult to buy food in the international market.

This bill intuitively reflects the United States' strategy to India.

When China made a big move into India, in order to contain China, the United States must not abandon India. It also has to make every effort to occupy the Indian market, enhance its economic influence in India, weaken China's influence, and achieve the purpose of controlling the Indian economy and thus controlling India's foreign policy.

As the most market-oriented country in the world, the United States is obviously one step ahead of China's playing the market card.

More importantly, through market-oriented operations, even if all resources cannot be mobilized, most resources can be mobilized. The United States has much more private grain hoarding than China.

In the next two months, US companies transported as much as 70 million tons of food into India through investment.

Compared with China's aid, these 70 million tons of food are the real life-saving food.

You should know that in the fall of 2038, most parts of India did not suffer serious natural disasters, and autumn grain increased by about 30% compared with the expected income. According to statistics released by the Indian government at the end of October, by the spring of 2039, India's food shortage was only 1.20 million tons. In other words, as long as American companies can mobilize 60% of domestic food hoarding, this loophole can be plugged.

The direct result is that the market share of American companies in India will rise sharply.

Faced with the challenges of the United States, China's response measures are very limited.

Although at the end of October, Li Pingko persuaded the National Congress and introduced a similar policy, that is, to allow enterprises to purchase grain from the people and then export it to India by investment, China does not have much private grain reserves and the resources that can be mobilized are very limited.
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