The United States is now very anxious about its own U.S. debt issue, and high-level leaders have repeatedly expressed their desire to hold talks with China, the purpose of which is nothing more than to talk about U.S. debt.
U.S. Treasury Secretary Janet Yellen wants to visit China, and U.S. lawmakers running for the top of the campaign have asked China to buy U.S. bonds in public speeches.
Will China do what the U.S. wants?
But for China, the most important thing at present, in addition to constantly revitalizing the economy, is to continuously improve the international status of the renminbi.
One of the important links is the use of RMB for oil and gas settlement with oil-producing countries in the Middle East.
In this regard, Saudi Arabia has not concealed its intention to sell in RMB.
To put it simply, the Saudis believe that the United States will not take the initiative to end dollar-based oil**, so they believe that it is up to them to make changes.
In this case, China stepped in by surprise and after years of hard work, finally got Saudi Arabia to use the renminbi as the settlement currency.
It is inevitable that China has become the world's largest importer. In addition, with 1.4 billion people living in energy, the country's population is four times that of the United States, so its oil imports are constantly increasing.
China's market is so large that oil-exporting countries such as Saudi Arabia cannot ignore China's requirement for RMB settlements, and the Shanghai International Energy Exchange provides these oil exporting countries with oil priced in RMB**This avoids the problem that oil has always been only able to refer to Brent *** and WTI***.
With China able to buy oil in the renminbi, it no longer needs to reserve too many dollars, so reducing dollar assets in its foreign exchange reserves, especially U.S. bonds, is a very natural option.
At the same time, although China itself produces a large number of **, it also continues to import ** from overseas.
No one knows exactly how many there are in China, but most observers believe that the number is much higher than the official figures.
One of the reasons for this is to avoid the impact of the financial crisis in the United States.
From the collapse of many banks in the United States to the acquisition of Credit Suisse in Europe, these all show that certain problems have begun to arise in the financial industry in Europe and the United States. At the same time, many bank deposit owners have collapsed trust in banks and are looking for other ways to find a way out of their money, and a lot of money has poured into China.
China is also making a large amount of reserves**, and the more they are, the better the credit of the renminbi will be, and the more money will be attracted to China.
In recent months, Switzerland has also exported a large number of goods to China**.
Due to the current large number of purchases by China, this also makes other countries have a consciousness, and many countries ask the United States for temporary storage, but the United States continues to suffer from the refusal of the United States.
Because the United States knows very well, but the reserves of various countries are increasing, the possibility of re-pegging the currencies of various countries will be greater, and the position of the dollar will be further weakened.
China has made so many preparations step by step, and of course it is impossible to give up its plans because of pressure from the United States or other institutions.
Recently,China has once again raised at least $10.6 billion in U.S. debt, and the actual amount may be greater than this oneBecause in February this year, the ** of US bonds appeared to a certain extent**.
Although the UN Secretary-General has publicly stated that the dollar is very important, the yuan cannot replace the dollar. U.S. Treasury Secretary Janet Yellen also mentioned earlier that the renminbi is unlikely to replace the dollar in the future.
But in fact, more and more countries are willing to use the yuan, so there is really no need for us to continue to use the dollar.
* U.S. bonds, will continue.