(NewsNation) — Could the Chinese yuan overtake the U.S. dollar?
That looming possibility foretells economic conflict between the two global powers, says Sen. Mario Rubio, R-Fla., vice chairman of the Senate Intelligence Committee.
Such moves would challenge U.S. global influence and significantly impact international politics and negotiation.
Rubio’s dire predictions come on the heels of the recent news that the yuan is the most-traded foreign currency in Russia.
“It’s not a surprise,” former Defense Secretary Mark Esper told “Morning in America.” “This is one pillar in China’s strategic plan to … displace the United States as the world’s leader.”
He added such moves could decrease American insights into trades and purchases in the global economy — and the trend is already taking root in South American countries such as Argentina and Brazil.
“Part of the reason why the Chinese want more countries to use the yuan in transactions — that would therefore insulate them from any financial sanctions by the United States,” Esper said.
Substituting the dollar with the yuan is just one part of their strategy, though, Esper said.
“They continue to use their economic influence as the world’s second largest economy to demand, to request other countries, to coerce business, (to) use what they want,” he said.
Still, it’s not time to panic, Esper said. The yuan remains at less than 3% of global currency reserves, and it’s very unlikely it’ll grow past the dollar, which remains at about 60% of the reserves.