China isn't dumping dollars. They're dumping banks, and setting up a new financial system.
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China runs massive trade surpluses with North America and Europe. Those markets pay in US Dollars or in Euro. Every day China earns about $2.7 billion USD ...
  • loathsome dongeaterAEnglish
    6·
    5 months ago

    TBH I don’t understand the urgency behind getting their money out of US banks.

    If you look at Russia, the American war machine had been knocking at their doorstep for approximately a decade the Nazification of Ukraine and the assault against Eastern Ukraine.

    With China, the acts of escalation have been Hong Kong protests (which have subsided for a while) and the recent round of sanctions to prevent the diffusion of high technology. But the situation has not come close to a scenario where their American assets could be freezed.

    • ☆ Yσɠƚԋσʂ ☆M
      17·
      5 months ago

      I think he’s correct that China wants to move USD and Euro into Chinese banks and then use these assets to collateralize new loans in any currency, and create new economic growth elsewhere. It makes sense to start moving assets out before things deteriorate to the point when it’s no longer possible to do. This way they can potentially use these assets to kick start a new BRICS trading system.

    • 小莱卡
      13·
      5 months ago

      theyve been arming taiwan for years and increasing the sinophobic rhetoric, they just now sanctioned their leading industries. If not now, when?