China Morning Missive

You know China is succeeding to some degree whenever Washington sends in its attack dogs.

You only see a public statement such as this from the IMF when an action taken by a third party is an action deemed to counter to the USD/SWIFT “rules based international order.”

It is also for this very reason why calls by China’s to reform the voting system of the IMF are ignored. The last time the system was amended was in 2010 and even then the change wasn’t ratified until 2015 once the American Congress voted to approve the ratification.

Yes, if you didn’t know that already, any changes to the voting systems at the IMF require Congressional approval. It was for this very reason why China decided to move to build outside institutions beginning with the Asian Infrastructure Investment Bank (AIIB) followed by the New Development Bank. Even though China did attempt to work within the system, it became very clear that the so called “rules” wouldn’t be amended to align with China’s rise in economic stature. Zero sum game.

Expect more moves such as these from other global institutions moving forward.