China has a much more sophisticated approach towards this. China made a strategic shift in how it manages dollar and euro reserves. Rather than outright discarding these currencies, China is actively relocating them from Western financial institutions, primarily American and European banks, to establish an independent financial ecosystem. This new system is being constructed using a combination of gold reserves, RMB swap lines, and even digital assets. This system is completely outside the traditional Western-dominated financial framework. China realizes the vulnerability of its assets within Western banks, particularly in light of events like the sanctions imposed on Russia. Consequently, China is channeling its funds into its own banking system, enabling the creation of loans and bolstering its financial autonomy. This is a good summary of the whole thing https://www.youtube.com/watch?v=DnzuR-kog-w
The US now constitutes a tiny portion of Chinese overall economy. I saw a video just the other day where a Chinese prof was saying that trade war with the US isn’t even seen as one of the top ten most important things for China’s economy at this point. Also, not sure where you get the notion that Russia is not doing proper reindustrialization. The industry in Russia is booming right now at a pace not seen since USSR days.
What they’re doing is a quiet transition that won’t provoke a decisive response from the west. This is the right approach, and it also ensures that things develop organically and countries get on board without feeling coerced. Any new financial system can only work if countries don’t feel like they’re being forced into it. The trade war Trump started will help convince countries that they need to move off the dollar without China or Russia having to do anything drastic.
China has a much more sophisticated approach towards this. China made a strategic shift in how it manages dollar and euro reserves. Rather than outright discarding these currencies, China is actively relocating them from Western financial institutions, primarily American and European banks, to establish an independent financial ecosystem. This new system is being constructed using a combination of gold reserves, RMB swap lines, and even digital assets. This system is completely outside the traditional Western-dominated financial framework. China realizes the vulnerability of its assets within Western banks, particularly in light of events like the sanctions imposed on Russia. Consequently, China is channeling its funds into its own banking system, enabling the creation of loans and bolstering its financial autonomy. This is a good summary of the whole thing https://www.youtube.com/watch?v=DnzuR-kog-w
The US now constitutes a tiny portion of Chinese overall economy. I saw a video just the other day where a Chinese prof was saying that trade war with the US isn’t even seen as one of the top ten most important things for China’s economy at this point. Also, not sure where you get the notion that Russia is not doing proper reindustrialization. The industry in Russia is booming right now at a pace not seen since USSR days.
What they’re doing is a quiet transition that won’t provoke a decisive response from the west. This is the right approach, and it also ensures that things develop organically and countries get on board without feeling coerced. Any new financial system can only work if countries don’t feel like they’re being forced into it. The trade war Trump started will help convince countries that they need to move off the dollar without China or Russia having to do anything drastic.