Blinken and Sullivan's frequent visits to Saudi Arabia carry significant implications.
After all, Saudi Arabia, deeply entrenched in the USD-denominated oil system, has made its own choices.
Recently, Saudi Arabia announced its participation in China's central bank digital currency cross-border trial project.
This project, named the "Multilateral Central Bank Digital Currency Bridge," operates in a complex and profound system that is difficult for ordinary people to explain.
However, its goal is quite clear: to end USD settlement in oil trade between China and Saudi Arabia.
This means that as Saudi Arabia deepens its cooperation with China, especially after joining the BRICS cooperation mechanism, their level of collaboration has reached new heights.
Why say this? Because escaping the influence of the USD oil system is a deadly challenge for many countries.
In the 1970s, the US reached an agreement with Saudi Arabia to settle oil trades in USD, thus cementing the USD's dominant position in the global monetary system.
Countries challenging this system have almost always faced US military intervention, from Iraq under Saddam Hussein to today's Russia under Putin.
The US has never backed down on this issue. But there is one exception: China.
Since the Ukraine crisis erupted, China has begun promoting the yuan as a settlement currency for oil trades.
According to Russian reports, energy trades between China and Russia are mostly settled in local currencies, and even Russia requires yuan settlement in oil trades with many other countries.
Now, China and Saudi Arabia's oil trade will also move away from USD settlement.
Would the US dare to take action against China? Clearly not, otherwise they would have acted long ago.
Although the scale of settlement between China and Saudi Arabia is not yet enough to shake the foundation of the USD oil system, the significance lies in the fact that their cooperation has opened a probing hole in this system, which once opened, will be hard to close.
Two years ago, US sanctions against Russia triggered global wariness of the USD, and a wave of "de-dollarization" quietly began worldwide, though many countries dare not openly engage due to US hegemony.
China and Saudi Arabia's move can be seen as a demonstration, proclaiming to the world not to be afraid and to proceed boldly.
Therefore, Saudi Arabia's expression of "complete trust in China" is not empty talk.
After all, there are not many countries globally willing to cooperate with China to escape US hegemony.
Once oil trades in the Middle East break free from the USD, the USD oil system will face serious turmoil, and the global oil market will undergo earth-shaking changes.
This is what the US fears most, but the drama has just begun.
The goal of the "Multilateral Central Bank Digital Currency Bridge" is not limited to oil trade but aims to settle all international trade in digital currencies, minimizing currency exchange rates and political interference in global trade as much as possible.
Which currency controls global exchange rates and drains global efforts? Certainly the USD!
The long-standing pain of global "dollarism" is no longer just talk.
Once this transformation begins, the US will have to find ways to cope. If they cannot stem this tide, the end of USD hegemony will be imminent.
In short, "actions speak louder than words." Since China has begun, every move could be decisive.
How many times can the US resist? Let's wait and see.
Firstly, the USD, as the world's major reserve currency and trade settlement currency, has long ensured US dominance in the global financial system.
However, as countries like China and Saudi Arabia accelerate efforts to move away from the USD oil system, the global economic system may face unprecedented adjustments.
If more oil-exporting countries settle trades in currencies other than the USD, particularly the yuan, it will weaken demand for and the status of the USD in international markets, potentially leading to USD depreciation and instability in global financial markets.
Secondly, this trend may prompt other countries to follow suit, especially those discontented with US hegemony.
While the US possesses formidable military power and economic influence, its unilateralism and sanction policies have already provoked resentment and resistance worldwide.
China and Saudi Arabia's cooperation could inspire other countries to take similar actions, forming a trend of united resistance against USD hegemony.
Furthermore, the development and application of digital currency technology will also have profound impacts on global trade and financial systems.
The rise of central bank digital currencies not only provides a new settlement method for cross-border trade but may also change existing payment and clearing systems, reducing exchange rate fluctuations and payment costs, further promoting the convenience and liquidity of global trade.
However, these changes come with challenges and risks.
Issues such as the security of central bank digital currencies, privacy protection, and uniformity of technical standards require joint efforts from countries worldwide to resolve.
Additionally, as a core player in the global economy, the US will face challenges from other countries in emerging technologies and financial innovations.
China and Saudi Arabia's cooperation in oil trade settlement marks a potential change in the global economic landscape.
With more countries joining this transformation, the future global economic order may evolve towards multipolarity and diversity, which will have profound impacts on global economic governance and geopolitical dynamics.
Therefore, we are at a crucial moment of global economic restructuring, and how we respond to these changes will determine the stability and prosperity of the international community in the future.
Comments