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Less U.S. dollars in China is a sign of an economic shift

Could the US dollar lose its reserve currency status to China? (PHOTO: FOX Business)

In 2022, American investment in China goes down because of calls for stricter rules.

Could the US dollar lose its reserve currency status to China? (PHOTO: FOX Business)

According to AEI Organization, as a result of more volatile markets and stricter regulations, portfolio changes do happen, but direct investments continue to behave in the same way. This is still the case, even though the business has changed. On the other hand, there have been more calls for openness because people are worried about how much money the US gives to important parts of the People’s Republic of China. This is going on in the middle of the worries. In addition, even though the Federal Reserve’s statistics show where portfolio funds actually end up in the United States, there is a growing need for transparency. This is really true in the United States. There is a good chance that Congress will do something in the near future. There are lawmakers, including Rubio, who want to pass laws that would make investments in important businesses more limited and closely watched. That’s why this is the case. The reason for this is that the law would allow these limits to be put in place and enforcement to happen.

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