Why Would RWA Be a Key Battleground and Opportunity for Globalization in US-China Competition?

Original Article Title: "Why Would RWA Be the Opportunity for Sino-US Confrontation and Globalization?"

Original Article Author: Yekai (WeChat/Twitter: YekaiMeta)

Seller Wang boasts about her melons while the Red-Clothed Godfather of RWA sings praises of RWA. Let the audience enjoy this melodious tune.

Lately, more and more central enterprise clients have come knocking. It is said that after the holiday, the State-owned Assets Supervision and Administration Commission (SASAC) held a crucial meeting, encouraging central enterprises to engage in overseas strategic asset reserves and cross-border financing trials, mentioning RWA (Real World Assets). Several central enterprise clients who were lukewarm last year suddenly became eager to participate in RWA trials this year. Obviously, there is a deeper strategic layout at play.

So why has RWA suddenly become the focus of these central enterprises? The opportunity of globalization, structural changes in the market, and the backdrop of Sino-US confrontation, RWA might be the key breakthrough in all of this.

Globalization has encountered bottlenecks in many aspects, especially the globalization of traditional assets has seen a setback, evolving into a multipolar situation. Countries, in order to protect their interests, have opted for "de-dollarization" to cope with the uncertainty of the global market. And this is precisely the opportunity for virtual asset globalization, with RWA at its core.

RWA can transform regional diversified assets into globally circulating borderless assets through on-chain tokenization. This process is straightforward and efficient:

• Regional Diversified Assets — Tokenization through blockchain

• Borderless Asset Management — Through a decentralized mechanism, global investors and crypto investors can directly participate

• Globalization, i.e., Borderless — Truly achieving free circulation and trading of global assets

This is the essence of RWA. It breaks the boundaries of traditional finance, allowing you to easily access and invest in assets globally anytime, anywhere.

Why is the core opportunity of Sino-US confrontation and debt transformation in RWA?

In the current international situation, Sino-US confrontation has become the main theme of the global economy, with two directions being particularly crucial: AI and RWA.

• AI: As the core of China's new round of technological development, AI technology has become a key engine for China's future development. For example, the release of DeepSeek has been referred to as the "Sputnik moment of artificial intelligence," potentially driving a wave of entrepreneurship in the AI field among Chinese private technology companies and bringing more economic opportunities.

• RWA: Amid the decoupling process between China and the U.S., China urgently needs to enhance the stability of its financial system through "debt-to-equity swaps." How can strategic assets on a large scale, infrastructure development, and global fund liquidity be used to defuse the debt crisis? The answer lies in RWA. Through RWA tokenization, traditional assets such as U.S. Treasury bonds can be transformed into strategic non-dollar assets such as gold, oil and gas reserves, and rare resources, which are precisely the high-quality underlying assets of RWA.

Therefore, RWA can not only help China address its debt issues but also serves as a key tool for China to seek independence and sovereignty in the global financial system.

Why is RWA China's core strength?

• Global Largest Manufacturing Capacity: China is not only the world's largest manufacturing base but also has a massive industrial chain. The formation of an industrial chain includes demand for commodities, international trade, supply chain finance, logistics warehousing, retail, and other links, which are typical application scenarios for RWA. China's industrial chain spans the globe, implying that RWA will bring higher asset allocation efficiency and global investment opportunities.

• Commodities and Energy: As the world's largest energy and commodities buyer and holder, China's investment and market control capabilities in these areas provide a rich resource foundation for RWA. Through RWA tokenization, energy resources, mineral resources, and other assets can easily circulate globally.

• Real Estate: China's real estate market is vast and primarily consists of operational cash flow and net lease-based real estate. Although challenging, with economic recovery and real estate price stabilization, these assets can also be tokenized in the form of T-REITs to make them more flexible and adaptable to the global capital market.

• IP (Intellectual Property): From "Ne Zha 2" to "Black Myth: Wukong," China's cultural industry is becoming a new growth driver. Through the IP licensing model and asset tokenization, these digital assets can be combined with RWA and NFT to achieve global asset trading.

• Talent Advantage: China not only has the world's largest labor force but also its higher education system has nurtured a large number of technology, finance, and management talents, driving the application and innovation of RWA across various industries.

RWA's Major Advantage:

The greatest advantage of RWA lies in its equivalence to an SPV (Special Purpose Vehicle) in the virtual asset world. The boundary between traditional assets and traditional funds has been completely broken. Through tokenization, assets can detach from the traditional financial and trade systems and enter a global borderless digital financial system. The ultimate controllers, investors, and traders of underlying assets can freely move on a global scale without being subject to any restrictions of traditional financial systems, especially fiat investment restrictions amid the ideological confrontation between China and the United States.

Conclusion: RWA, the Key to Globalization's New Opportunities

Are you ready to embrace this financial revolution? RWA is not just an opportunity in the China-U.S. confrontation but also a breakthrough in the trend of globalization. With RWA, you will no longer be bound by geographical and traditional financial constraints. You will have the ability to access global assets, opening up entirely new opportunities for wealth growth.

Globalization, Now Borderless. Through RWA, we will usher in an era of borderless asset management. Today, RWA is providing a new path for Chinese companies in the midst of the China-U.S. confrontation, while also offering a new asset allocation method for global investors. Whether you are a corporation or an individual, seize this opportunity, embrace the liquidity of global assets. Are you ready?

#ARAW Always RWA Always Win!

By 2025, the RWA market will rapidly find its place in the rapid growth. WeChat cannot answer questions one by one. After the core disciple class, there will be a partner class and a listed company research camp. If you have needs or questions, you can bring them to the classroom for serious study, interactive discussion, and sandbox simulation. Friends who have demands to understand RWA and are looking to initiate RWA projects are welcome to reply "course" or "enroll" in the official account to join the course preparation group.

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This article is contributed content and does not represent the views of BlockBeats.