US President Donald Trump and Chinese leader Xi Jinping prepare to meet for the first time since 2019 to finalize the trade deal. The meeting is set up in Gyeongju, South Korea, after a fierce rivalry broke out between the two nations since Trump imposed tariffs. However, gold proponent Peter Schiff cautioned that even if the US-China trade deal goes forward, de-dollarization will never stop.

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China Will Continue the De-Dollarization Process, Says Peter Schiff

Schiff warned that the US-China deal will do nothing to address the rising budget deficits, interest rate cuts, soaring inflation, and de-dollarization. The average American will gain nothing out of the deals as the economic situation worsens in the homeland. He stated that Trump is trying to solve a problem that would not have existed if he hadn’t started it in the first place.

The leading analyst also highlighted that gold dipped to the $3,900 level due to the trade talks. He summed it up, explaining that China will continue its de-dollarization agenda even if the deal is passed. The perspective here is clear: developing countries want to step aside from the stronghold of the US.

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“Gold is down this morning as investors react to news of a trade deal with China that will move us closer to where we were before Trump escalated the war. But the deal will do nothing about soaring budget deficits, rate cuts, inflation, or de-dollarization. Gold will keep rising,” he said.

China has been pushing the de-dollarization agenda aggressively for three years. It has partnered with Russia, Iran, and a few other countries in Africa and began trading in local currencies. This would lead to the US dollar facing a deficit as it’s less used in the markets. While the scale is minuscule, it’s still a head start and will only continue to grow.