China and ASEAN Ditch the Dollar – Yuan Goes Prime Time

The US dollar’s dominance takes another hit as China and ASEAN nations pivot to yuan-based trade. Another brick in the wall of de-dollarization—just don’t ask how stable the alternative really is.

Geopolitical shift or economic power play? Either way, the move signals a growing appetite to bypass Western financial systems. Active currency wars just got a new frontline.

And let’s be honest—nothing says ’trustworthy reserve currency’ like a centrally controlled asset with capital controls. The irony’s thicker than a Beijing smog alert.

China Is Busy De-Dollarizing

Per a recent Reuters report, Chinese President Xi Jinping is currently touring Southeast Asia. His official visit is marked with a solid agenda, one that promotes close ties with the ASEAN countries and, at the same time, helps the nation push its Chinese yuan internalization to new levels.

In this wake, the People’s Bank of China is spearheading efforts to bolster yuan usage, banking on the US tariff mayhem to achieve the aforementioned target. This has been done via PBOC-controlled financial service firm UnionPay, a network enabling cross-border payments in yuan in countries like Vietnam and Cambodia. UnionPay is ensuring a nuanced yuan usage method by enabling the southeastern countries to facilitate transactions in yuan for tourists and small businesses using the QR code system.

In addition to this, PBOC’s offshore yuan standby currency swaps have hit a new high. The statistics showed nearly $4.3 trillion worth of transactions being settled in Yuan in February alone.

This move also outlines China’s long-term vision to liberate the world from Western financial regimes.

US Dollar in Trouble?

The phenomenon of de-dollarization has once again been gaining steam, especially after the US tariff ordeal sparked trade war fears. President Donald Trump’s aggressive tariff stance has been touted as a primary catalyst sparking anti-dollar regimes.