[Brian Griffin]

“And how does he propose to do that without running massive trade deficits for renminbi to be held by foreigners?”

What Xi might be intending is that loans be denominated in Yuan.

[pierrem15]

Just making loans means they can mainly be used for purchasing Chinese exports. The USD became a reserve currency because we deliberately gave a bunch of dollars to allies and allowed them to run trade deficits so they could recover after WWII.

Unfortunately it became a habit of the US foreign policy elite to trade unfair access to the US market to gain political support. Johnson did this with consumer electronics in the 60s to gain support from Japan for the Vietnam War. Within a few years, the US consumer electronics industry, which was among the best in the world in the early 60s, was dead as Japan flooded the US market.