China doesn't need to dethrone the dollar to win the global currency war. The world's focus should not be on whether China will achieve its goal of having the renminbi replace the dollar. Beijing continues to methodically build the financial infrastructure necessary to reduce dependence on a dollar-centric global system, which will have significant geopolitical ramifications.
At this year's Lujiazui Forum, Chinese officials unveiled a series of measures designed to expand offshore renminbi (RMB) finance, deepen Shanghai's role as an international financial center, create new liquidity facilities for foreign central banks and sovereign investors, expand cross-border RMB trading, and further open portions of China's financial sector to international participation.
The Chinese leadership has spent nearly two decades attempting to internationalize the renminbi, beginning in the aftermath of the 2008 global financial crisis. The latest measures announced at Lujiazui coincide with the first year of implementation of China's 15th Five-Year Plan, emphasizing finance as a national strategic objective.
