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<<If China wanted to do more business in renminbi, it would have to allow access to its capital markets, which it doesn't want to do because as an exporting nation that would cause the renminbi to strengthen, make Chinese exports less attractive. So they are kind of stuck for now. They need to either use dollars or something dollar adjacent.>>
If China continues to move up in the value ladder, they will start to open up the capital markets and let renminbi strengthen. Before world war II, the pound to dollar ratio is above 5, it quickly dropped to about 2.5 after the war now it's about 1.35. Such thing can change slowly and then suddenly, it could be triggered by wars, by economic crises, or by shooting at self.
