The persistent closure of the Strait of Hormuz and the subsequent geopolitical fallout reveal China’s unexpected resilience and strategic dominance in global energy and technology. China has successfully leveraged its massive investment in EVs, solar, and battery arrays to reduce reliance on oil and the dollar, while simultaneously positioning itself as a key supplier in a fragmented monetary system. Meanwhile, Western nations face mounting fiscal pressure and bond market volatility, exacerbated by the inflationary nature of prolonged conflict and defense-focused spending. The shift toward Hamiltonian economic policies—characterized by high tariffs and a neutral reserve asset like gold—appears to be the emerging strategic response to these challenges. Investors should monitor the potential for yield curve control and the long-term competitive threat posed by Chinese AI, which is increasingly matching Western capabilities in both performance and cost-efficiency.
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