Washington. Chinese President Xi Jinping’s open warning to the US dollar and call for strengthening the yuan as an ‘International Reserve Currency’ is not just an economic statement, but a strategic declaration to change the global balance of power. The US dollar has been the backbone of international trade, investment and foreign exchange reserves for decades. But now this system is facing a direct challenge from a superpower like China. Jinping’s statement may send American President Donald Trump’s temper soaring.

Xi Jinping’s move comes at a time when the US has used the dollar as a geopolitical weapon – be it sanctions on Russia, economic isolation of Iran or technological and trade pressure on China. China has received a clear signal that its dependence on the dollar-based system has become a strategic risk. This is why Beijing is now moving rapidly towards reducing dollar-dependence and making Yuan a global option.

China has already increased trade in yuan with Russia, Iran, Saudi Arabia and many African countries. Discussion on a common currency or alternative payment mechanism among BRICS countries is also part of this strategy. China’s intention is clear that if a way out of the dollar is made, America’s economic hold will automatically weaken.

However, the Yuan also faces big challenges. The strength of the dollar comes not just from America’s economy, but from its institutional credibility, open capital system and military-political influence. In contrast, China’s currency is still surrounded by government control, limited transparency and capital restrictions. Unless China makes its financial system more open and trustworthy, the yuan’s global dominance will be limited.

Nevertheless, this statement of Xi Jinping makes it clear that the world is gradually moving towards a multi-currency system. The dominance of the dollar may not end immediately, but its reign is no longer as strong as before. The rise of the yuan is an alarm bell for America and the beginning of a new phase for the global economy. In short, this is not just a currency war, but a 21st century global power war, where economic dominance, political influence and strategic independence are deeply interconnected.