The United States is one step closer to losing its global might.
China and Saudi Arabia are all set to make oil trade in the Chinese Yuan, instead of the US dollar. This is likely to reduce American global political clout as the dollar would take a severe hit.
Chinese Yuan Will Hit American Dollar Badly
Speaking to Fox News, Sen. Ben Sasse of Nebraska expressed the United States could lose its global footing if China and Saudi Arabia go with this deal.
According to the senator, the unfolding situation in Ukraine and Russia could send a powerful signal to the rest of the world about America’s incompetence as a global leader.
Thus, if America fails to assert its influence in the Russian war, other countries would take advantage of the Biden administration as well.
One of the ways China could be prevented from pursuing this path is if the United States either defeats Putin directly or helps Ukrainians do it.
Breaking: Saudi Arabia is considering settling oil sales to China not in US Dollars but in Chinese Yuan.
The decline of US hegemony is in full swing. This is exactly what we meant by the West "shooting itself in the foot". This is just the beginning.
— Richard Medhurst (@richimedhurst) March 15, 2022
This way, China could get a direct message about the will of the Biden administration in achieving the foreign policy goals of America, Sasse added.
Calling it a “big, bad thing,” Sasse indicated this is the everlasting battle between the US-led western values and the Chinese Communist Party’s oppression of its own people.
So, this Chinese effort to “displace the dollar” is something the United States must care about on an immediate basis.
Furthermore, the senator asserted that every freedom-loving person, if given a choice, would prefer American leadership over Chinese one any day.
1. India is buying discounted oil from Russia
2. Saudi Arabia considers Yuan over U.S Dollar
3. China a major influence now said NATO & West began this conflict
4. Venezuela stands by Russia while demanding better from the West
5. Russia is close to defeating Ukrainian army
— Fiorella Isabel (@FiorellaIsabelM) March 18, 2022
The only way other countries divert toward China is not by will, but by seeing America going weak.
Sasse concluded by noting America could help Ukraine by arming them, which would also deter China from hitting America economically.
America’s Global Clout is in Danger
The ambitions of China were always controversial for the United States, but Saudi Arabia was one of the few allies of America in the Middle East.
Under the Trump administration, the relations between America and Saudi Arabia improved incredibly.
However, since the inauguration of President Biden, America’s global image has taken a drastic hit, and US relations with Saudi Arabia are no exception.
For more than 50 years, Saudi Arabia has been making oil trade with China in US dollars.
However, according to the Wall Street Journal, Saudis now want to get paid in Yuan.
A famous economist named Aleksandar Tomic stated both of these countries would benefit if they exclude dollars from their transactions. The only country at the disadvantaged end would be the United States.
Some analysts are still skeptical about the likelihood this deal will attract other countries.
They believe that the Saudi currency, riyal, is pegged to the American dollar; so if the US dollar nosedives, the riyal would also face the music.