'China is taking a leap forward to control world currency'
It is obvious that China is up to
something hoarding gold like a dragon. In fact, it is taking a leap
forward to control the world currency and to replace it with the yuan,
Dr. Thorsten Pattberg, China expert at the Peking University, told RT.
China is vowing to make more reforms, among them cutting red tape
and establishing the yuan as a world currency. The 7th Annual
Meeting of the New Champions is opening in the Chinese city of
Dalian, the gathering has become known as a 'summer Davos'. RT
has talked to Dr. Pattberg about China’s prospects for
introducing a new world currency.
RT: Do you think when China says it wants to make the
yuan a global alternative to the dollar, is there any possibility
of that happening at some point?
Thorsten Pattberg: Yes, it's perfectly reasonable to think
that the Chinese want to see their currency become the next world
currency, there's a plan. And of course China at the moment is
purchasing more and more gold, this also plays into this. We
heard they recently purchased several hundred tons of gold
through Hong Kong, the trading hub. And of course if you hoard
gold like a dragon, this is a lot about prestige. The mere
presence of gold in your country gives rise to even more
self-confidence and to this bling-bling sensation that China is
really up to something. The mere intention to buy more gold in
the future will certainly have an impact on the rise of gold
prices in the world. So China is taking a leap forward to control
the world currency and to replace it with yuan.
RT: The current Chinese leadership seems almost
obsessed with reforms. Why? Isn't China in good enough shape as
it is?
TP: It is still growing by 7.5%, it's enough for the
current leadership. And of course China naturally is a
reform-based society that announces reforms regularly. The new
government is pursuing a range of new reforms, tax reforms
basically. They want to transform the investment economy into an
economy that is more focused on domestic consumption.
RT: With increasing wealth comes enormous changes in
society, in national identity, can China itself keep up with its
own economic growth?
TP: I believe that it will keep it up for the next 10
years at least. But there are a lot of things to do. The economy
growth is actually faster than a lot of other things in China
like the political maturity. Social problems are still looming in
China. And one of the topics at the global forum is the work
ethic. China wants to have a stakehold and make the rules of the
game and shape them in the future, and it has to come to the
table and discuss with Europeans and Americans how we deal
together in the future. Not only on economic issues, but on
political ones, on ecological ones, social and cultural ones.
China has to catch up in all those fields quickly.
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