USA Dollar

China wants to dethrone the US dollar as the leading currency across the globe


With China striving to build up its internal economy in order to reduce reliance on the dollar, some experts say this could lead to an eventual turnover of spending power

The US leads the world’s economy, but China has a few tricks up their sleeve that could leave the dollar less effective(Getty Images)

Experts suggest that Beijing is subtly working towards ‘de-throning’ the dollar, even though it’s not trying to make the yuan a global currency just yet – China is making moves to strengthen the yuan through local institutions and regional groups like the SCO.

Beijing aims to boost the use of the yuan in cross-border trade and investment, lessen its reliance on the dollar, reduce exchange risk and dollar liquidity shortage, and ensure access to global markets during geopolitical crises.




Despite rising tensions between the U.S. and China since 2018, no Chinese leaders have publicly stated an intention to compete with the dollar.

However, as these tensions continue, Chinese financial regulators and scholars have openly expressed worries about Beijing’s vulnerabilities and urged government officials to step up efforts to protect the financial system.

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China is working to improve its economy so that it isn’t left dependant on the dollar(Getty Images/Bloomberg Creative Photos)

Fang Xinghai, the vice chairman of the China Securities Regulatory Commission, has warned that China needs to get ready for the chance of being cut off from the U.S. dollar-based global payment system.

This would be a kind of “forced financial decoupling” where Chinese groups wouldn’t be able to use the U.S. dollar or make international transactions with it – similar to what happened to the ruble in Russia after they attacked Ukraine, forcing other countries to enforce sanctions.

This warning comes as two U.S. senators have suggested a bill that would punish Chinese groups enforcing Beijing’s proposed national security law in Hong Kong. The law aims to crack down on protests against the government, and the bill would also penalize banks doing business with these groups.



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