China’s National Tax Authority has issued a notice that it will be replacing the US dollar in the country’s trade with the United States, the official Xinhua news agency reported.
Xinhua quoted the notice as saying that the National Tax Agency will issue “NPC coin” coins in 2020.
The coin is intended to replace “Dollar coins”, which were introduced in the mid-2000s to replace China’s older, more expensive coins.
The NTC coin was introduced in 2016.
In 2017, the Central Bank of China also issued “NTC coin” in an attempt to encourage Chinese citizens to swap the countrys most-used currencies for the US dollars, which it said had become “unstable”.
The move was made in order to help boost confidence in the dollar and to ease the US’ economic and political problems.
China also announced on Thursday that it would allow foreign investment in its economy for the first time in four years, in a move that analysts said was aimed at boosting domestic investment and easing its economic woes.
“It is the biggest step by a major country in its long history of openness to foreign investment,” said Robert Marder, an economist at the Capital Economics firm in New York.
He added that the move by the NTC would not help Chinese companies become more competitive.
“There are more than 20,000 foreign companies that have been granted Chinese government concessions to buy Chinese shares, and that’s only a fraction of what China needs to compete on the world stage,” Marders added.
‘Greater emphasis’ on digital currencyChina is widely expected to follow the example of other major economies, including the US and Japan, in embracing the blockchain technology.
In October, President Donald Trump signed a presidential memorandum that allowed the US to waive trade sanctions against China.