China's Strategy to Challenge the US Dollar and What It Means for Global Finance

China's Strategy to Challenge the US Dollar and What It Means for Global Finance

China is actively working to reduce reliance on the US dollar by increasing gold reserves, promoting yuan in trade, and expanding BRICS, which could impact global finance and personal investments.

China Just Found A Way To Replace The US Dollar (And It's Already Working). | Transcript:

The United States dollar has been the world's most powerful currency for almost 100 years. But now, China is vowing to replace the United States dollar. And they're not just talking about it, they're putting their money where their mouth is. After the United States attacked Iran, our economy and inflation took a beating. China used our economic pain as opportunity to then go out and buy a lot more gold. That way, they can strengthen their currency while we were hurting. But that's not all. The president of China says that the world should be prepared because the current international order, meaning the United States dollar dominance, is quote crumbling into disarray. Take a listen.

Now, the reason why you want to pay attention to this isn't because the dollar is going to collapse tomorrow or anything like that, but because these changes don't just impact our economy, they impact our currency, which means it can impact your paycheck. It impacts your savings. It impacts inflation. And it also impacts the stock market and your retirement, which is why you want to be paying attention to this. And that way you can also find opportunity through the changes that are happening right now. This is also one of the reasons why on June 16th, 2026, I'm hosting a live free and virtual investor workshop at 12 PM Eastern time, noon, where I'm going to be showing you number

one, how our economy is changing right now in Trump's economy during a time where we have all these changes with technology and AI and all these geopolitical changes, but also how these changes create new and unique investment opportunities for you to grow your wealth faster outside of just your 401k. I'll be showing you my firm's research. That way, you can come out of this finding better investment opportunities, knowing how to find better investments. And as an added bonus, when you sign up for my live and free workshop on June 16th, you're also going to get market briefs, which is my newsletter for investors, completely free as a bonus. And when you actually show up live on

the workshop on June 16th, you're also going to get a copy of my company's new book, How Money Changed Forever, for free. But you have to actually show up live on June 16th at 12:00 p.m. noon Eastern time to get a copy of this book. So, if you're an investor and you want to see how you can invest your money better through these changes in our economy, I invite you to join me. I'm a workshop on June 16th. I have the link for you down in the description below. Just a reminder that our software has a limited number of people that can actually join me live. So, if you are interested, please I encourage you to register soon and make sure you show up on time and early. That way, you can

secure your spot. In the recent years, there has been a growing alliance called BRICS, BR R I C. That's Brazil, Russia, India, China, and South Africa that are actively working to overthrow the United States dollar. Well, BRICS started as a group of just five countries, Brazil, Russia, India, China, and South Africa. A lot of people said it was a conspiracy theory, but now it's a group of about 20 countries. And not only are these BRICS nations considering building their own currency as a way to compete against the United States dollar, but some individual countries inside of the BRICS nations like China are working to actively strengthen their own currencies. That way they can individually compete against the United

States dollar. And in simple terms, to explain China's three-part plan in order to one day replace the United States dollar, they're trying to do these three things. Number one, they want to build a currency that countries around the world trust. You might have noticed that recently China has been working to build a lot of deals with countries around the world as a way to conduct business, maybe even sell oil in the Chinese yuan, not the United States dollar, because if more people are using the Chinese yuan, that builds more trust for the Chinese yuan. And that's the first part to their plan. Number two, the Chinese government has been working to back their currency, the Chinese yuan, with gold. One of the

big concerns with the United States dollar is that the dollar is not backed by any precious metal. It's not backed by really anything. It's backed by a promise by the United States government which allows us in the United States to print and spend pretty much an unlimited amount of money. But that creates concerns about what is the real value of a dollar if you can just print more of those dollars without needing more wealth. And this is where China has been working to acquire more gold as a way to continue producing more trust in their currency to kind of show that they're backing their currency with gold and to show that their currency has value. Not just because of a promise, but because

of this physical gold. And what's interesting is anytime there's economic pain happening in the United States, China uses that pain as an opportunity to go out and buy more gold to show the rest of the world, hey, we are strengthening our currency by buying more gold. while the dollar is getting hurt because of inflation. Now, for full transparency, according to the United States Treasury, the United States owns way more gold than China does today. However, we haven't bought any more gold in the last 50ome years. Now, this is where you start to see a lot of very emotional headlines talking about how the dollar is going to collapse. But let me really put it in perspective with

some real numbers. That way, you see where the dollar is relative to the Chinese yuan and how things have been progressing over the last couple of decades. In the year 2005, the United States dollar made up about 66.5% of the global currency reserves. This means that countries around the world stored their wealth in the United States dollar and that was about 66.5% of the global reserve currency. We can compare that to the Chinese yuan which in 2005 was about 0% of foreign reserves. Now let's fast forward 10 years to the year 2015. Now, the global foreign reserves of the United States dollar fell from 66.5% to 65.7% and the Chinese yuan was about 0% of the global reserves. So, you can start to see still not much competition from

China. But take a look at what happened now in the year 2025. By the year 2025, now we saw the United States dollar reserves globally fall all the way down to 56.8% 8% while the Chinese yuan reserves now started to rise to about 1.9%. So the concern isn't the number, the concern is the trend because United States dollars have been trending downwards while it looks like the Chinese yuan is starting to trend upwards. That's the concern that people have while China is working to do these three things. Which is why now people are getting concerned about where is this going to be not next year but 10 years from now as the Chinese economy is still growing faster than the United States's economy. And to be clear, there

are two main reasons why China wants to distance themselves from the United States dollar. Reason number one is because of potential sanctions. What we saw happen after Russia attacked Ukraine was the United States said, "Hey, Russia, we don't like what you did, so we're going to punish you by freezing United States assets, by freezing United States dollars." Now, this was a way to punish the Russian economy for attacking Ukraine. But now all these other countries around the world like China said, "Hey, you don't like what Russia did, and so you're going to punish Russia by freezing their United States assets." That's a concern for us, China, because we are still holding on to a lot

of United States dollars. The Chinese government is still one of the largest lenders to the United States government. And so, if now China could see their assets frozen if they did something that the United States didn't like, that poses risks and concerns to the Chinese economy. They don't like that. Reason number two is because there's a lot of power in being the world's reserve currency. What the world's reserve currency means. The United States dollar is a rose reserve currency, which means global trade happens in the United States dollar. If you want to go out and buy oil, most of the time you have to buy in the United States dollar. Although just a few years ago, we started to see some countries starting

to sell oil not in the United States dollar, but in the Chinese yuan. But what it means is that global trade is happening in the dollar. Countries are saving their money in the United States dollar. All that means is that there's more trust, more value, and more power in the United States dollar. This gives the United States government the ability to spend more money it doesn't have. This gives more ability for our Federal Reserve Bank to print more money. This gives us more ability to stimulate our economy because we can just create this money out of thin air without having major inflation problems. Now, you might

say, well, Despite, we are facing some inflation problems. Yes, we are. But imagine how bad our inflation problems would be if we were spending and printing money the way that we are today and people do not have trust and faith in the United States dollar. The inflation problem would be significantly worse. So we are able to boost our economy artificially by having a strong currency and that's the benefit of being the world's reserve currency. If China had the world's reserve currency, well then they could do what the United States is doing. That's why people want to be the world's reserve currency. That's why they want to be the world's economic superpower because that gives you the ability to grow your economy,

enrich your citizens without actually producing more wealth. You can do that through the printing process. So, what does this mean for you? Besides the fact that this could create potential investment opportunities, which I'm going to talk about in just a minute, the thing that you want to pay attention to is where is this trend going to go? Is the United States going to continue printing money and spending money and creating concerns about the dollar? If so, we might continue to see these foreign reserves of the United States dollar continue to fall. If that happens, that means people are losing trust in the United States dollar globally. And if we continue to see this number rising, well, that can show you

where the tide is moving over the coming years. Again, this isn't something that's going to happen overnight, but this is something that could happen over years and decades, which could create a change in the way that our government spends money. It could create a change in the way that your savings are valued, your paycheck is valued. So, that's something you want to pay attention to. But now that you understand that, let's talk about how this could create potential investment opportunities as you're thinking about your investments in this global economy. I'm going to break this down into three different parts. As a reminder, this is one of the things that I'm going to be going over

on my workshop on June 16th at 12:00 p.m. Eastern time, noon. So, if you haven't registered for that, again, I have that link for you down in the description. And I can't tell you what to invest in because I'm not a financial adviser. I'm just a random guy on YouTube. Investing has risks. You're never guaranteed to make money when you invest. In fact, you will lose money at some point. So, make sure you always do your own due diligence and never blindly trust a random guy on YouTube. Let me break this down into three different parts. Starting with number one, if you wanted to invest in the Chinese economy if you believe that more money is going to grow into the Chinese economy. Here are a couple ETFs that will give you

exposure to the Chinese economy. Again, I'm not telling you what to invest in. My goal is to help you start thinking like an investor. Number one is MCHI. This is an ETF that's going to give you broad exposure to the Chinese economy. This is going to give you broad exposure to large cap Chinese internet companies, banks, insurers, and industrials. Pretty much all the major industries in the Chinese economy. Then there's FXI. This is another ETF that's going to give you exposure to the Chinese economy. This time, it's going to be investing in the 50 largest Chinese companies that are listed in Hong Kong. So, you could think

of this as a way to get exposure to the blue chip companies in the Chinese economy. Maybe you're not so keen on China, but you want to invest into what the BRICS nations are doing because you hear what's going on with bricks and you say, you know what, that could create an investment opportunity. Well, there's a couple ways that you can play that. You can invest into individual companies. For example, EWZ is going to give you exposure to the B, Brazil. INDA is going to give you exposure to the I the Indian economy. These are two country specific ETFs that are going to give you exposure to those local economies or if you wanted to invest into the emerging markets. An ETF like VWO will give you

exposure to that. VWO is giving you exposure to many of the major bricks economies. That's countries like China, India, Brazil, Saudi Arabia, UAE and many others. So if you want to get exposure to those emerging markets, VWO can give you exposure to that. Or maybe you're saying you know what Jasper, I don't really want to invest into these different types of countries. I'm just concerned about how all of these changes are going to impact inflation. Well, one of the things that investors like to do when they're concerned about inflation is invest into hard assets. This would be things like physical gold. This could be things like real estate. Now, when you invest in these hard assets, it does

take more time and work, but there's also ways to get exposure to different types of hard assets, specifically commodities in the stock market. Let me go over a few different examples to help you start thinking like an investor. Number one, if you want to get exposure to gold, there are ETFs like GLD that are going to give you exposure to physical gold. If you want to get exposure to silver, there are ETFs like PSLV that are going to give you exposure to silver. Or if you just want broad exposure to commodities, well, there are ETFs like DBC that are going to give you exposure to many different types of commodities. These are things like energies, metals, and agriculture.

Because what we've seen is when there's concerns about currencies, well, commodities generally, not always, but they tend to do more stable during those currency crises. So, what we talked about in this video is that for the last 100 or so years, the United States dollar has been the world's reserve currency. It's been the world's most powerful currency. But what we're starting to see more and more happen today is that countries like China are speaking up, saying that they want to replace the United States dollar. Before years ago, it was kind of just this conspiracy thing that people would just kind of say in rumors and whispers, but now it's becoming larger and louder as the president of China is calling out

the United States. They're calling out the current world order. And we're also starting to see the BRICS nations expand and more publicly state that they want to replace the United States dollar. Maybe that's going to be through trying to create their own currency or through individual countries like China working to strengthen their own currency. Well, what China is trying to do is number one is they want to build more trust in the Chinese yuan by building more of these trade agreements in the Chinese yuan. Number two, they're trying to back the Chinese yuan with physical gold. And then number three, they're trying to buy more physical gold, especially during

times where the United States economy begins to hurt as a way to show the rest of the world, hey, we are working to strengthen our currency while the United States is hurting. All of this is happening because of two main reasons. Number one, the Chinese economy does not want to be sanctioned by the United States if they do something that the United States doesn't like. And number two, when you are the world's reserve currency, you have a lot of powers. You have the ability to spend and stimulate your economy, and you have the ability to grow your economy because of your world's reserve currency status. So, these are the things that are happening.

Again, this is not going to be a drastic one night shift, but we're starting to see this trend happen over the past couple of decades. The foreign reserve holdings of the United States dollar have been falling. And just recently now, we're starting to see foreign reserve holdings of the Chinese yuan starting to rise. Now, the question is what's going to happen 10 years from now? Because if we continue to see that trend happening, that could pose more concerns for the United States dollar, especially considering that the Chinese economy has been growing faster than the United States's economy. So the question isn't what's going to happen in 2026 or 2027. The question is where are we going

to be in 2035 or 2045 depending on how things pan out between now and then. Now, all this being said, how can this create potential investment opportunities? If you believe that there are concerns in the United States dollar, well then this can create potential opportunities for growth elsewhere. We talked about different ways that you can invest in the Chinese economy. We talked about different ways that you can invest into the different BRICS nations or emerging markets in general. And then we talked about different ways that you can get exposure to commodities. If you got value out of this video, again, the best thank you is a referral. So, if you could please share this video with a friend, family

member, colleague, or fellow investor. That way, we can continue to spread this type of financial education. Thank you. President Trump just launched his new plan to save the United States dollar from the $39 trillion debt crisis. No, it's not by having the dollar backed by gold. And no, it's not by having the dollar backed by oil either. It's by having the United States dollar backed by crypto. Let me explain. The value of a money depends on if people believe that it has value. If I walk into

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