They didnt. He is just making it up. China has been dumping US treasuries recently. Maybe he is confusing that with China's foreign reserves drying up.
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In any case, Yuan is the new foreign currency. And China has, well, all of it...
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In any case, Yuan is the new foreign currency. And China has, well, all of it...
Higher reward, similar risk, still perfectly reasonable USD FX reserves.
Economically, demographics are insanely against China and it is not clear that immigration is a viable way for them to close that gap.
Finally, their unique political system has not been tested during a period of low growth. It is not clear they have the political stability to be a reserve currency. Again, the US has been pushing their luck.