The US-China trade war is escalating! - Part 2

https://ca.finance.yahoo.com/news/china-ex-central-bankers-warn-052125447.html

China ex-central bankers are warning that the current US-China trade war will deteriorate into full-blown currency and financial wars.

We've already stated the 4 stages of the escalation below.

https://sg-stock.blogspot.com/2019/08/the-us-china-trade-war-is-escalating.html

Trade war -----> Currency war -----> Financial war ------> Economic war

This warning means that the Chinese don't expect to engage in an economic war with the US since there is no mention of the economic war and the worst outcome will be a financial war.

What is a financial war?

A financial war will mean that both sides do not allow each other to use its own financial clearing and paying systems.  Currently, the world is mostly using the US financial clearing and paying systems such as telegraphic transfers (SWIFT), credit card systems (visa, master, amex), etc.  Therefore, China will be at the losing end because its financial clearing and paying systems (alipay, wechat pay, union pay) are not well established yet and the US doesn't use it except in China.  I foresee that China will enforce all payments be settled in RMB during the financial war so that it can bypass the US systems and USD.

Let's see how this will pan out first before we discuss this further.