President Obama plays the 'China Card'. Is he correct in asserting the U.S.

[HereSince1628]

21. It may be about China, but maybe not about territorial claims

China's international trade has reached a point where having Yuan as reserve for trading is increasingly important.

Making money in international markets depends on exploiting asymmetries. Our trading partners must buy our exports with relatively more expensive to use US currency. Being the nation that produces the reserve currency has long given US financiers an advantage. They have relatively easy access to currency that is in short supply among our trading partners. The downside is the dollar's strength which is problematic for US manufacturers in the export market. Overseas customers needing to pay in USD are at financial disadvantage in purchasing our manufactured goods, and this contributes to trade deficits.

China's trade activity has pushed the importance of the Yuan to a status that produces a recognizable threat to the use of the USD as the dominant reserve currency. That not only threatens the status quo, it threatens at least marginally higher costs for the US financial sector...aka lower profitability.

The American financial sector HATES lower profitability, which even if it is tiny per dollar is enormous when summed across trillions of dollars being traded. And when we look at who controls American politics, and thereby -all- our policies, it's the financiers NOT the manufacturers or laborers. Financiers want the USD to remain the global reserve currency, and our policy is shifting to contain China, imo, not because China makes claims on rocky almost submerged islands with nearby oil reserves distant from its shores, but because of Chinese monetary policy and a dominant Yuan threaten the American financial sector.