China's Game: How It Pays Out. Saturday's Core Brief

How China Is Winning And Will Win The World. Series 21 #6

China is actively positioning the yuan to assume the role of global reserve currency. It has developed an integrated strategy with three components that feed into one another. The creditor network, over $1 trillion in Belt and Road loans and investment across nearly 150 countries, creates debt leverage that gives China control and the bilateral relationships through which yuan trade flows. Yuan trade generates the transaction volume that makes CIPS a credible settlement system. CIPS provides the infrastructure that enables yuan trade without relying on the dollar system. China’s accumulation of gold reserves provides value and credibility to the yuan. This forms the architecture of a parallel financial order. This is the most significant application of Hofstede’s long-term orientation in modern geopolitics: three tracks built simultaneously over more than a decade, each reinforcing the others.