New doubts about China’s confidence in the U.S. dollar emerged yesterday as Zhou Xiaochuan, governor of the People’s Bank of China, released a statement calling for a new international currency reserve to replace the greenback. Mr. Zhou pointed out the shortcomings of the current dollar-dominated financial system and said a new currency reserve system controlled by the IMF could prove more stable. China currently holds about two-thirds of its almost $2 trillion foreign exchange reserves in dollar assets. In a second statement on Monday, the Central Bank’s vice governor assured China’s continuing commitment to the U.S. currency, aware that every change in China’s FX reserves strategy could result in significant devaluation of the greenback.
China’s State Council is expected to approve Shanghai’s bid to turn itself into an international finance and shipping center. The city’s proposal is currently going through routine reviews and already received informal nods by the State Council. The plan aims to establish finance laws, a taxation and credit system, a supervisory system, modern shipping systems, and tax cuts for related industries.
China’s increasingly aggressive stance in maritime encounters has sparked concerns about the country’s peaceful intentions. Territorial disputes in the South China Sea as well as in the East China Sea bear significant risks for peace in the region. International defense experts interpret China’s more aggressive naval actions in the last months as a sign for the country’s aspirations for expansion. Territorially disputed areas, such as the Spratly Islands in the South China Sea and the Senkaku Islands in the East China Sea, are causing concerns about stability in the region.
A few months ago, I wrote about the early stages of the conflict in Ukraine through the lens of Sun Tzu’s The Art of War. While it appears likely that the war will carry on into the foreseeable future, enough time has passed for us to make an honest assessment of each side’s relative […]
The Ukrainian Army has made dramatic strides in the last few weeks. Ukraine’s tactical commanders have outfoxed their Russian counterparts, and by issuing a feint towards the south the UA has been able to earn substantial gains in the north of their country. The impact of these efforts have been compounded by the steady stream […]
In mid-May the Irish political party, Sinn Féin, won the plurality of seats in the Northern Ireland Assembly. Many American readers might not fully understand the significance of Sinn Féin’s political victory- but rest assured that subjects of the United Kingdom and a wide range of political movements the world over have heard the message […]
The first wave of the Russian offensive in Ukraine has fallen short of Russian autocrat Vladmir Putin’s ambitions. Most analysts deduced that Putin had hoped to achieve a decapitation strike of the Ukrainian government- taking Kiev and replacing Ukrainian President Vladimir Zolinski with a pro-Kremlin voice. Kiev has been threatened repeatedly through the course of […]
On the weekend of March 26th, the notorious MS-13 gang went on a massive killing spree in El Salvador which left more than 70 people dead by Sunday. Even for a country where powerful gangs hold massive sway, this recent tragedy stands out considering that it was the bloodiest day on record since the civil […]
