Tensions heighten between the United States and China amid trade wars, COVID-19, a chaotic presidential election period, disputes over Tibet, and increasing pressure at the Taiwan Strait.
The “Great Power Competition” (GPC) is a termed now commonly used to describe the global affairs between the United States and China. Technology, specifically dual-use technology (which has both military and civil use), plays a critical role within the GPC. The United States has taken steps to secure its advances in dual-use technology, most recently with the ban of exportation of such material to Hong Kong in mid-2020.
Whether you view the dollar primacy since Bretton Woods as an advantage or a burden for the U.S., you may agree that currency control plays a role in the GPC. A Central Bank Digital Currency (CBDC) being deployed by China could have immense implications for the role of the Dollar as the global reserve currency and the political stability of the US-Chinese relations.
