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Starting today, the yuan is officially a member of the International Monetary Fund’s basket of global reserve currencies.

this group of currencies, known as Special Drawing Rights (SDR), forms a kind of pseudo-currency—used only by the IMF—to supplement countries’ official reserves. The value of the SDR is determined by the set of currencies in the basket, each of which is given a weighting toward the final calculation

The change will not lead to a precipitous rise in demand for yuan because the total value of SDRs used as reserves pales in comparison to that of dollars.

Lang’s assessment that the regime is bankrupt was based on five conjectures. Firstly, that the regime’s debt sits at about 36 trillion yuan (US$5.68 trillion). This calculation is arrived at by adding up Chinese local government debt (between 16 trillion and 19.5 trillion yuan, or US$2.5 trillion and US$3 trillion), and the debt owed by state-owned enterprises (another 16 trillion, he said). But with interest of two trillion per year, he thinks things will unravel quickly. Secondly, that the regime’s officially published inflation rate of 6.2 percent is fabricated. The real inflation rate is 16 percent, according to Lang. Thirdly, that there is serious excess capacity in the economy, and that private consumption is only 30 percent of economic activity. Lang said that beginning this July, the Purchasing Managers Index, a measure of the manufacturing industry, plunged to a new low of 50.7. This is an indication, in his view, that China’s economy is in recession. Fourthly, that the regime’s officially published GDP of 9 percent is also fabricated. According to Lang’s data, China’s GDP has decreased 10 percent. He said that the bloated figures come from the dramatic increase in infrastructure construction, including real estate development, railways, and highways each year (accounting for up to 70 percent of GDP in 2010). Fifthly, that taxes are too high. Last year, the taxes on Chinese businesses (including direct and indirect taxes) were at 70 percent of earnings. The individual tax rate sits at 51.6 percent, Lang said. Once the “economic tsunami” starts, the regime will lose credibility and China will become the poorest country in the world, Lang said. Several commentators have expressed broad agreement with Lang’s analysis.

The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.

a risk of deepening divisions between China and the US over influence and oil in the Middle East. "Bilateral quarrels and clashes are unavoidable," he told the Asia and Africa Review. "We cannot lower vigilance against hostility in the Middle East over energy interests and security."

World Bank president Robert Zoellick. "One of the legacies of this crisis may be a recognition of changed economic power relations,"

China unveiled its largest rise in defense spending in three years on Monday, setting an 8.1 percent growth target compared to 2017, fuelling the country’s ambitious military modernization program amid rising Chinese security concerns

The defense spending figure is closely watched around the world for clues to China’s strategic intentions as it develops new military capabilities, including stealth fighters, aircraft carriers and anti-satellite missiles

Last year, defense spending was set to increase by just 7 percent, to 1.044 trillion yuan ($164.60 billion) about one-quarter of the proposed U.S. defense spending for the year. In 2016, it grew by 7.6 percent.