Trump made it very clear that China has the ability to abandon the dollar!

He pointed out that China is leading most of the world away from the dollar-based system and believes that the renminbi could potentially replace the dollar as the world's number one currency. He also stated that if this happens, it would be a huge failure for the United States. The following is relevant background and analysis of the reasons:

Trend of De-dollarization

Multiple economies around the world, due to concerns about the risks of the dollar and their own development needs, are strengthening local currency settlements in cross-border trade and investment, showing a clear trend of 'de-dollarization.' For example, Brazil and China have reached agreements to use local currencies for trade settlements, and the share of renminbi settlements in Russia's foreign trade has soared. This series of phenomena indicates that the international status of the dollar is under pressure, and China has played a driving role in this.

Growth of China's Economic Strength

The continuous development of the Chinese economy and the increase in its share of global trade have laid a solid foundation for the internationalization of the renminbi. As China's economic influence expands, more and more countries are willing to use renminbi for settlements in trade with China, which to some extent weakens the dominant position of the dollar.

Financial System Development

China is continuously advancing financial system reform and opening up, improving financial infrastructure construction, strengthening financial supervision, and enhancing the stability and transparency of financial markets. These measures create favorable conditions for the renminbi to play a greater role on the international stage, boosting China's confidence in abandoning the dollar.