China reveals its plan to challenge the US dollar for dominance. Could it ever work? China is seizing an opportunity to challenge American dominance in global finance and exert greater international influence at the expense of the all-powerful US dollar.
Geopolitical uncertainty – driven in large part by President Donald Trump’s often chaotic economic policy – has gripped markets in recent weeks, with the dollar falling to four-year lows. Meanwhile, investors are flocking to safe-haven assets, driving gold prices to record highs of more than $5,500 an ounce. That’s given China an opening to promote its own currency as a viable alternative.
Over the weekend, the flagship ideology journal of China’s Communist Party published remarks from President Xi Jinping that outlined plans to turn the renminbi into a global reserve currency. That’s the role the US dollar currently plays – the go-to currency for the vast majority of foreign transactions, making it one of the world’s safest investments.
No one expects that to change anytime soon. But the steep decline in the dollar’s value since Trump took office again last year has at least opened the door to potential challengers.
According to the journal Qiushi, Xi told government officials that China should aspire to establish “a strong currency widely used in international trade and foreign exchange,” with a “powerful central bank” and the ability to attract investment and influence global pricing...........................
https://www.cnn.com/2026/02/03/money/china-dollar-currency-challenge-hnk-intl
