US Debt Default Could Help China Dethrone the Dollar

US Debt Default Could Help China Dethrone the Dollar
Speaker of the House Kevin McCarthy (R-Calif.) speaks to members of the media at the U.S. Capitol in Washington on May 24, 2023. Kevin Dietsch/Getty Images
Autumn Spredemann
Updated:
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As the June 5 deadline for a decision on the U.S. debt ceiling looms, China could gain the upper hand in global influence if the United States defaults on its $31.4 trillion debt. Amid political tensions and struggles for trade dominance, the debt ceiling debate is poised to have a significant impact on the U.S. dollar, both in markets and as a global reserve currency.

It would be a windfall for China, which aims to dethrone the U.S. dollar as the world’s go-to for trade and cash reserves.

Autumn Spredemann
Autumn Spredemann
Author
Autumn is a South America-based reporter covering primarily Latin American issues for The Epoch Times.
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