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<p>Acknowledgments ix</p> <p>About the Author xi</p> <p>Preface xiii</p> <p><b>Chapter 1 An Unconventional Trade Feud 1</b></p> <p>1.1 Thanos and Trump 1</p> <p>1.2 What Causes the Trade War? 4</p> <p>1.3 The Novelty of This Trade War 18</p> <p>1.4 Economic Impacts and Consequences 26</p> <p>1.5 Trade War and Deglobalization 33</p> <p>Annex A: China’s Belt and Road Initiative 38</p> <p>Annex B: Official Statements from the US and China 39</p> <p>Annex C: Major Timeline of the Trade War 42</p> <p><b>Chapter 2 Trade Imbalances and the Greenback 46</b></p> <p>2.1 The Missing Link between Trade and Currency 46</p> <p>2.2 Stubbornly Persistent US Trade Deficits 48</p> <p>2.3 Is the Exchange Rate to Blame? 56</p> <p>2.4 Exorbitant Privilege of the Dollar 63</p> <p>2.5 Dollar Recycling and the Global Saving Glut 70</p> <p><b>Chapter 3 Deglobalization Prompts De-Dollarization 78</b></p> <p>3.1 Anti-Multilateralism and Anti-Sovereign Movement 78</p> <p>3.2 The Globalization Cycle 81</p> <p>3.3 Currency Globalization 89</p> <p>3.4 Financial Deglobalization 98</p> <p>3.5 End of Cycle: De-Dollarization 105</p> <p><b>Chapter 4 China–US Financial Decoupling 111</b></p> <p>4.1 Trade War and the Yuan 111</p> <p>4.2 The Yuan in the Monetary Policy Context 115</p> <p>4.3 Globalizing the RMB in the Deglobalizing World 129</p> <p>4.4 Reserve Diversification 145</p> <p><b>Chapter 5 A Race on the Digital Turf 156</b></p> <p>5.1 Reform and Technology Independence 156</p> <p>5.2 China’s Structural Challenges 159</p> <p>5.3 China’s Digital Economy 168</p> <p>5.4 The Tech Rush and the Little Chips 186</p> <p><b>Chapter 6 Cryptocurrency and the People’s Money 194</b></p> <p>6.1 Deglobalization in the Digital Time 194</p> <p>6.2 Bitcoin and Distributed Ledgers 197</p> <p>6.3 Can Cryptocurrency Replace Money? 215</p> <p>6.4 Regulatory Responses 220</p> <p>6.5 Implication on Monetary Policy 223</p> <p><b>Chapter 7 Foreign Reserves Go Digital 227</b></p> <p>7.1 From Zhou to Carney 227</p> <p>7.2 Reserve Currency Based on Liquidity 229</p> <p>7.3 The Potential Role of Cryptocurrency in Global Reserving 238</p> <p>7.4 Implication of the Libra Project 244</p> <p><b>Chapter 8 The Endgame 249</b></p> <p>8.1 The Trade War as the Perfect Shock 249</p> <p>8.2 Libra or RMB, Which is the Designated One? 251</p> <p>8.3 What Can China Do? 253</p> <p>Bibliography 257</p> <p>Index 269</p>

<p><b>RAYMOND YEUNG</b> graduated with a PhD in Economics from Queen's University in Canada and is a holder of the Financial Risk Manager (FRM) certification. He began his economist career one week prior to the Asian Financial Crisis in 1997. He is currently Chief Economist Greater China at Australia and New Zealand Banking Group Limited (ANZ), leading an award-winning team covering the region's macroeconomic and financial market research. His insights have received strong following, including institutional investors, corporate treasurers, and central banks. He speaks frequently in industry conferences and shares his views on Bloomberg, Financial Times, CNBC, Di Yi Cai Jin, and Caixin. Prior to joining ANZ, Raymond was Deputy Head of Economic Research Asia at Swiss Re. He is a Council member of China Chief Economist Forum and a columnist in the Chinese media.

<p><b>DISCOVER HOW DIGITAL CURRENCIES CAN TRANSFORM THE WORLD'S TRADING SYSTEM</b> <p>"Raymond Yeung does a brilliant job of explaining the historical role of the US dollar and how it has thwarted China's efforts to internationalize its own currency, the yuan. His focus on the US-China trade war and the evolving global technology landscape provides a fitting and timely analysis around how US-China financial decoupling could be accelerated by the creation of a World Crypto Currency (WCC)."<br> <b>—Alex Capri, Visiting Senior Fellow, NUS Business School; Research Fellow, Hinrich Foundation</b> <p>"Raymond Yeung has written a ground-breaking book. He links globalization, dollarization and financial integration in a new and insightful way. His analysis of China's foreign reserves and how they are used in many different ways including massive equity investments is very interesting. His analysis of China's trade and investment restrictions is fair and balanced. Mr. Yeung states that cryptocurrencies and block chain innovations could replace the dollar dominance and facilitate China's and the world's move away from dollar dependency. His idea of a World Crypto Currency (WCC) could provide China and the world with a reserve currency to replace the US Dollar. It will result in the Federal Reserve having to make up the funding deficit, which would result in a dollar devaluation, fewer US imports, more US exports and the elimination of the trade gap. It's an interesting idea which deserves consideration."<br> <b>—Mark Mobius, Founder, Mobius Capital Partners; author of <i>The Inflation Myth and the Wonderfull World of Deflation</i></b> <p>"Few subjects are more critical for the global markets than the intersection of China trade, China's ambitions for the renminbi, and the rise of cryptocurrencies. In <i>China's Trump Card,</i> Raymond Yeung provides a guide that is equal parts accessible and insightful, ending with a bold and innovative proposal to save China, the US, and the world from the trap of dollar dominance."<br> <b>—Tom Orlik, Chief Economist, Bloomberg Economics; author of <i>China: The Bubble That Never Pops</i></b> <p>"In <i>China's Trump Card,</i> Raymond Yeung, has written a useful summary of trade friction between the US and China. But even more interesting is his emphasis on the friction on the financial front that has followed. He believes that just as globalization made the US dollar the pre-eminent currency in the world, the reversal of that globalization will inevitably lead to de-dollarization. His argument that cryptocurrency could soon present a credible alternative to the dollar regime is essential reading for those seeking a clue as to how the international monetary system might evolve."<br> <b>—Henny Sender, Chief Correspondent, International Finance, The Financial Times</b> <p>"<i>China's Trump Card</i> is an impressive and provocative attempt on the controversial subject of whether the US dollar's role as the global dominant reserve currency can be deposed. He goes into the emergence of cyber-currencies and whether these can replace fiat currencies. Conclusively, he proposes a World Crypto Currency (WCC), which China should support. In principle, a multilateral currency is better than a single-nation currency, but the controversial part is whether the world will ever agree on which agency to issue the WCC, its governance and who controls it. I cannot see the US standing aside to see the dollar challenged. As someone has said, a direct RMB challenge to the dollar becomes like a declaration of open war. Whether you agree or disagree, Raymond has set out his views and facts on a subject of great timely interest, with creative thinking on policy options. A valuable addition to the dollar-RMB debate."<br> <b>—Andrew Sheng, Distinguished Fellow, Asia Global Institute; former Chairman, Hong Kong Securities and Futures Commission</b>

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