Like yuan internationalisation, US re-industrialisation is a fairy tale
Despite contrasting political atmospheres reflected in speeches by Donald Trump and Li Qiang, both the US and China are engaging in "wishful thinking" regarding their economic plans, specifically re-industrialization and yuan internationalization. These ambitions, while not new, are hampered by a broken global trading system and misvalued currencies, turning them into persistent challenges.
The yuan's limited international usability is a key obstacle to its widespread adoption. While Saudi Arabia's acceptance of yuan for oil payments has garnered attention, the currency's restricted use outside China means that surplus yuan earnings are likely converted back into US dollars for investment, as viable yuan-denominated assets remain scarce for non-Chinese entities. Furthermore, restrictions on foreign investment in China and limitations on yuan outflows for Chinese citizens further impede the currency's global circulation.
via SCMP Full Text Feed
Despite contrasting political atmospheres reflected in speeches by Donald Trump and Li Qiang, both the US and China are engaging in "wishful thinking" regarding their economic plans, specifically re-industrialization and yuan internationalization. These ambitions, while not new, are hampered by a broken global trading system and misvalued currencies, turning them into persistent challenges.
The yuan's limited international usability is a key obstacle to its widespread adoption. While Saudi Arabia's acceptance of yuan for oil payments has garnered attention, the currency's restricted use outside China means that surplus yuan earnings are likely converted back into US dollars for investment, as viable yuan-denominated assets remain scarce for non-Chinese entities. Furthermore, restrictions on foreign investment in China and limitations on yuan outflows for Chinese citizens further impede the currency's global circulation.
via SCMP Full Text Feed
