China’s desire to escape the shadow of the U.S. dollar and build an alternative infrastructure for global finance is being stymied by one major factor: Its reluctance to loosen the shackles around its own currency. By creating the Cross-Border Interbank Payment System, or CIPS, back in 2015, the Chinese financial authorities had hoped to provide a way for companies and individuals to keep money flowing internationally — even if China were ever to come under the same kind of economic pressure Western countries are currently meting out to Russia, following its invasion of Ukraine.
“If China starts to develop a real messaging system that will be a pretty clear signal that China wants to beef up a viable alternative,” says Emily Jin, a researcher at the Center for a New American Security.
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Author
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Andrea Kendall-Taylor
Senior Fellow and Director, Transatlantic Security Program
Andrea Kendall-Taylor is a Senior Fellow and Director of the Transatlantic Security Program at CNAS. She works on national security challenges facing the United States and Eur...
