China launched oil future trading in Shanghai a week ago, starting a new age of purchasing oil with China currency - RenMinBi or China Yuan. A petroyuan age is coming, which may break the current dominance of US dollar supremacy - petrodollar. This move by China shall shape the world, but may trigger a war because the USA is so upset by such action by China initiating petroyuan.
Why is China doing this? And, why is the US unhappy?
In petrodollar system, you have to use US dollar to buy oil in the market, the most important commodity in modern world. But, how can you get US dollars? You have sell or send goods to the USA to get US dollars, then use the dollars to buy oil. In other words, USA can use its currency - US dollars - to get whatever goods from other countries it wants! The problem is the US dollar is disconnected with gold or lacks of support by materialized goods production. Anyone is attempted to challenge the US dollar supremacy, this guy will face serious dangers including life threat. The former leader of Iraq was an example!
China has become the largest oil importer because of huge demanding recently, but China could not buy oil without US dollars. China has to sell tons of goods to America to exchange for US dollars, then use the dollars to buy oil from oil-producing countries. Besides that, China has so much dollars in hand and has also to buy US treasury bonds (or debt), otherwise China can get nothing from the States (notes: US restricts exporting high-tech goods to China because of security reason, that cause a huge trade deficits - over $300 billion every year). Do you think China is happy with this deal?
A conclusion is unavoidable that Petroyuan will result in a war between the USA and China.
Fortunately, President Donald Trump has seen this problem for a long time. Now, he have taken a series of unprecedented actions in order to solve this problem. He has emphasized America first since he took the office.
1. Reduction of tax, which will bring US companies back home to create more high-pay jobs for Americans.
2. Imposing high tariff on imported goods from China, which will reduce the US trade deficits.
3. Tightening immigration policy to restrict competition of foreigners with Americans, including building up a great wall along the border with Mexico.
4. Invest heavily on military to defend the US dollar dominance in the world financial system, trade, and business deals.
5. Recovering US manufacturing sector to increase US goods production and increase the percentage of physical economy.
If President Trump is successful in doing these things listed above, he will be indeed a great American President and will win respects not only from home but also from all over the world.