Dongwu Securities Lu Zhe: The hegemony of the US dollar is becoming increasingly difficult to maintain, and the global economic landscape is being reshaped.

On May 7, Lu Zhe, chief economist of Dongwu Securities, pointed out in a lecture titled "Debt Cycle and Monetary System-Reshaping the World Economic Pattern" that the debt pressure in the United States is eroding the foundation of US dollar credit. Trump 2.0 series of policies further become the biggest threat to the "oil-dollar system", giving rise to the new Triffin dilemma, making it increasingly difficult for the United States to maintain US dollar hegemony. In contrast, the foundation of China's economy is solidifying with high-quality development and the transition of old and new driving forces. On one hand, the basic fundamentals of the Chinese economy remain positive, with a super large market of 1.4 billion people and the world's largest and most comprehensive industrial production system providing a solid foundation for China's development. On the other hand, policy reserves are sufficient, and compared to Western countries, China still has ample space in fiscal policy. Moderately loose monetary policy ensures abundant liquidity, and policies to expand domestic demand such as "dual circulation" and the development of new industries are showing significant effects. The real estate market is also consolidating in a stable trend, laying a solid foundation for the stability and prosperity of the capital market.