The Chinese government has always made its intent known to the world when it comes to the US dollar. China wants to lead the world, and to do so, it needs to aggressively deploy methods to internationalize the Chinese Yuan. As the US dollar continues to weaken due to Trump’s fierce tariff policies, the time is ripe for China to strike. Here’s what China may end up doing if the US dollar continues to weaken in the future.

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The American Currency is on the Verge of Collapse

Ray Dalio, the seasoned economic expert and head of Bridgewater’s Associates, had recently issued a stark warning for the US economy. Talking about his prediction in detail on X, Dalio shared how the US economy is moving towards a state where a financial heart attack may wreck the US economy. Dalio’s emphasis was on the rising US debt situation and how it may end up diluting the US economy, leading it to its death.

“The level of debt our country faces is unprecedented in all of history. If we don’t effectively deal with it—and soon—our system will experience a financial heart attack. It all comes down to the numbers. The US currently pays about a trillion dollars a year on interest rates. And over the next year, we’re going to have to pay back and roll forward over nine trillion dollars of debt. This squeeze on spending simply isn’t sustainable. If spending continues at its current rate, a supply-demand issue is inevitable.”

The level of debt our country faces is unprecedented in all of history. If we don’t effectively deal with it — and soon — our system will experience a financial heart attack.
It all comes down to the numbers. The US currently pays about a trillion dollars a year on interest… pic.twitter.com/O0WfhqCyo5

— Ray Dalio (@RayDalio) April 4, 2025

Moreover, Trump’s global tariffs have further been pressuring the US dollar. The US dollar has fallen 10% in 2025 and continues to exhibit a weak performance against other currencies. This development has given significant time for the anti-dollar forces like the yuan to take hold of the narrative.

What Is China Doing At Present?

PBOC earlier announced its plan to aggressively internationalize the usage of Yuan from all sides.

“We’ll accelerate the expansion of the yuan’s use in trade, further enhance its financing function, and optimize policies governing funding pools and overseas listings of domestic companies,” the central bank said.

Moreover, the bank is also in favor of establishing a multipolar currency system. The one that favors new currencies instead of relying solely on the US dollar.

These slow yet steady mechanisms predict a pattern, showcasing how China is integrating itself into the new world’s financial structure.

China is also preparing to work on a digital Chinese yuan to spearhead the new financial innovation. Although the country is strictly known for its anti-crypto policies, the nation’s digital Yuan attempts have been quite significant, with a special focus on e-yuan and its digital deployment around the world.

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