How China Is Succeeding in Its Plan to Make Renminbi a Reserve Currency

NEW YORK (TheStreet) -- The arc of history may be bending toward China and its currency, the renminbi, which is rising to ever greater prominence on a regional and world stage. And it's no accident -- it's part of a plan has been in the works for a while.

One way of thinking about how China operates versus the United States is that China thinks in terms of decades whereas the U.S. has a focus of one-to-three years. Consequently, projects that China works on are often hidden within the shadows of current events and tend to be ignored until they surface into reality. Some of those projects are now coming to light.

Recently, there has been the implementation of the Asian Infrastructure Investment Bank that has attracted many United States allies even though US officials counseled against them joining the organization. The AIIB will compete against already existing Asian institutions that have had the backing of western countries.

In addition there is the effort by China's president, Xi Jinping, to initiate a "One Belt, One Road" program that is intended, in its simplest form, to expand and secure trade routes to the Middle East and Europe to enhance greater trade with these areas. A further discussion of this effort can be found in an article threateningly titled "Now China Starts to Make the Rules."

Phillip Stephens, the author of the piece, closes with "the important thing about all the initiatives is that China intends to set the parameters. As the London-based consultancy Trusted Sources puts it, Beijing is harnessing all its economic, financial and diplomatic muscle to drive a process of Eurasian integration from its own border to the Middle East, Africa and Europe." He adds, "Beijing intends to be a rule-maker as much as a rule-taker," in the world.

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