#china-yuan

#china-yuan

The World Bank's recent report argues that government intervention, when done right, can actually be an essential ingredient of economic success, reversing decades of opposition to industrial policy.

The meeting made clear, based on the requirements set out in the 2021 joint notice issued by ten government agencies, that stablecoins are considered a form of virtual currency. At present, they cannot adequately meet requirements for customer identification, anti-money-laundering compliance, or related regulatory standards. They also carry significant risks of being used for money laundering, fraudulent fundraising, and illegal cross-border capital transfers.

Escalating geopolitical risk continued to dominate global markets' concerns, with safe-haven demand keeping the dollar index anchored near a multi-week high.

The world saves in dollars in large part because it pays in dollars. The dollar's dominance in cross-border trade is arguably built on the petrodollar: globally traded oil is priced and invoiced in USD.

Open source - that might be the clearest signal of how China wants artificial intelligence to reshape its economy. Hisham Alrayes, the group CEO of Bahrain-based GFH Financial Group, said China is prioritizing open models and broad deployment to spread AI's gains across the economy, instead of funneling them to a few tech giants. Speaking at a Davos panel on China's "AI+ Economy" strategy on Wednesday, Alrayes said the country's approach reflects a fundamentally different economic philosophy.

Jim O'Neill, the economist who coined the term BRIC' 25 years ago, argues that the group is losing its relevance. At its peak, the BRICS coalition of economies Brazil, Russia, India, China and South Africa was seen as a serious attempt to move away from the United States dollar and the domination of Western economic institutions like the World Bank, Group of Seven (G7), and International Monetary Fund (IMF).

China's official discourse centres on the idea of peaceful rise, the commitment to non-interference in internal affairs, respect for sovereignty and territorial integrity, and economic partnerships based on mutual benefit. Beijing insists that relations with Washington should not slide into conflict, calling for a system of global governance built on cooperation rather than confrontation. Yet the geopolitical landscape reveals a wide gap between this discourse and reality. Donald Trump's return to the White House has brought back rhetorical escalation and increased geopolitical pressure.

What we'll see is the trade-off between whether it's going to be industry and tech, or looking after domestic demand. These are the two priorities that are juggling for Xi Jinping right now.