China is Setting Up a New Financial System

China is setting up a new financial system using the usd, not destroying it.

For China, what is important is not being under the threat of a weaponized usd.

China completely doesn’t care about the existence or the death of the usd as the global reserve currency.

Beijing wants the renminbi aka Chinese yuan (CN¥), the Chinese currency, to be a powerful GLOBAL TRADE CURRENCY but NOT the global reserve currency because the Chinese rulers want China to be an industrial power, even THE global industrial power (China already has 40% of the global industrial capacity and expanding) and the Chinese rulers absolutely don’t want to deal with the Triffin dilemma.

THE TRIFFIN DILEMMA : the country owning the global reserve currency has to run a structural commercial deficit IN ORDER TO CIRCULATE ITS CURRENCY WORLDWIDE and inevitably, since it imports much more than it exports goods, it STRUCTURALLY doesn’t need to produce the manufactured goods to be eventually sold abroad, its industrial sector will be negatively impacted if not destroyed. And that is something that the Chinese rulers ABSOLUTELY want to avoid.

This video is practically one year old but is still absolutely relevant.