#USChinaTensions
$ETH $**Currency** in the context of US-China tensions (**#USChinaTensions**), you are likely referring to the **national currencies** of the two countries (the US dollar **USD** and the Chinese yuan **CNY**) and their role in the economic conflict between the two superpowers.
### **1. Main currencies in the conflict:**
- **🇺🇸 US Dollar (USD):**
- The strongest currency globally, used in most international transactions.
- An American pressure tool via **financial sanctions** (such as excluding countries or companies from the dollar financial system).
- **🇨🇳 Chinese Yuan (CNY/RMB):**
- China seeks to enhance its position as an alternative global currency to the dollar.
- It is used by China in trade settlements with its allies (like Russia and some African countries).
### **2. How do tensions affect the currencies?**
✅ **Trade War:**
- Tariffs and restrictions lead to fluctuations in the value of **the yuan against the dollar**.
- China may intervene in the foreign exchange market to maintain the stability of the yuan.
✅ **US Sanctions:**
- America targets Chinese companies by **preventing them from dealing in dollars** (such as **Huawei**, **SMIC**).
- China is seeking alternatives like a **global alternative payment system (without SWIFT)**.
✅ **Technology and Digitization:**
- China is developing **Digital Yuan** to curb the dominance of the dollar.
- America is concerned that the digital yuan could become a tool for evading sanctions.
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