no one is going to trust the Chinese. Their economy is command and control, their stock market is propped up by the state, and anyone who gets involved in that crap is going to lose his shirt, and several other people’s shirts.
That’s true they do manipulate their currency.
However, they may trust their Central Bank which consists of Russia, China, India and Brazil.
“Their economy is command and control, their stock market is propped up by the state”
That really rings a bell. Now where else have I seen that?
no one is going to trust the Chinese”
Yes. The Chicoms will soon figure out that nobody wants their gold certificates for oil. Gold for black gold is the way their trade will go.
It is more than that, neither the Chinese Communist Party nor its government is truly transparent. Investors do not really know what is going on behind the scenes of a inherently closed system. We do know that there is a lack of respect for intellectual property, heavy state involvement in the economy (which includes competing with private businesses), and an arbitrary bureaucracy that can and will punish private companies for arbitrary reasons.
The U.S. political system and government are generally open. While there is skullduggery and dishonesty, it only affects policy at the margins. For all our faults, we still have one of the most open and (compared to most nations) honest political system.
The dollar is the world reserve currency because the alternatives are all much worse. Offering yuan denominated futures contracts will appeal to a niche market, not the broader investment community.