China continues to promote her currency, the yuan, as an international currency reserve through a package of trade and investment bilateral deals.
China and Chile plans to double trade within 3 years through free trade. Wow.
From Xinhua,
China and Chile agreed Tuesday to upgrade their bilateral ties to a strategic partnership, and double trade in three years.
Chinese Premier Wen Jiabao and Chilean President Sebastian Pinera announced Tuesday the establishment of China-Chile strategic partnership and the completion of negotiations on investment-related supplementary deals to a bilateral free trade agreement.
During their talks, Wen urged speedy signing and ratification of these supplementary deals and called for the finalization of the China-Chile free trade area…
Meanwhile, Wen suggested that the two sides launch currency swaps and expand settlement in China's renminbi.
Aside from Chile, as Zero Hedge points out, the list of China’s trading partners who now use the yuan as medium (including setting up of currency swaps) includes Japan, Russia, Iran, India and Brazil.
The world is in a gradualist path of bypassing the US dollar, which I believe, aside from the yuan as global forex reserve, could be partly motivated as insurance against a currency crisis
And as I have been saying, China’s supposed gunboat diplomacy and promotion of the yuan (or the seeming Dr. Jekyll and Mr. Hyde relationship with Philippines) just doesn’t add up.
