Strategic motivation: Avoiding financial 'weaponization'

Beijing aims to build an international RMB network primarily as a defensive hedge against the potential for U.S.-led financial sanctions, similar to the exclusion of Russia from the global financial system. By establishing a 'respectable second' currency, China seeks to constrain U.S. unilateral financial power without incurring the high costs or policy constraints associated with acting as the primary global reserve currency.

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