I think the reason they want to avoid the US dollar is so that they do not need to obey US sanctions.
From what I understand, if you send US dollars around the world, they need to go through a US bank. All US banks must obey US government sanctions.
From what I understand, if you send US dollars around the world, they need to go through a US bank. All US banks must obey US government sanctions.
Now, if I were the Chinese with an overabundance of dollars (or worse, US Treasury bonds), I'd be trying to convert them into something else ASAP. They tried to buy companies, agricultural land and other things with intrinsic value, but were blocked by CFIUS and the EU is setting up its equivalent.
For them dollars earn much more being held rather than being invested in most other things within reach.
They can dig up more gold from their own mines which they're always doing anyway regardless of its prevailing price.