South China Morning Post/Wang Xiangwei
“The fact that Beijing was able to make enough concessions and wrap up the talks in a mere 10 months, after years of procrastination, says a lot about China’s reimagined diplomatic priorities for a post-Covid-19 world.”
USAGOLD note: One of the consequences of the just-completed China-EU trade and investment accord that is not getting a great deal of attention is the effect it will have on the dollar’s reserve currency status. Europe, as a whole, is likely to build yuan reserves in order to support its purchases from China. The Regional Comprehensive Economic Partnership signed among Asian countries (which excluded the United States) in November will have a similar effect in the Far East. The two together will advance China’s dream of making the redback an international reserve currency. Logically, the redback’s gains will be the greenback’s loss. It is not surprising that the Biden administration has registered its “concern” about the agreement with EU officials.
Repost from 1-4-2020
