some Chinese companies refusing to accept payment in $US

If there ever was a sign that the global balance of power in the world is changing, then the fact that various Chinese companies are now refusing to accept payment of goods and services in US dollars is a huge one.

China is one of the biggest creditors of the US – it has around 3.3 trillion US dollars in its coffers as foreign reserves.  And it’s no doubt nervous about the US government solution to its burgeoning debt: get the printing  presses out. The long term consequence is a US currency in decline – not the best investment one would think.

The rise of the Chinese currency, the renminbi, is a major shift in financial power. 30% more was traded in 2012 than in 2011 and HSBC launched its first renminbi denominated retail bond worth RMB 2Bn outside China – in London.

Looks like the renminbi is set to become a major reserve currency player.

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