Dear Comrade Xi

> What would China actually need to do to make the RMB a global reserve currency?

My understanding is that in the long-run, you cannot be the world’s reserve currency AND hold a trade surplus. It is called the Triffin Dilemma.

Maybe it's a minor point among everything else, but I don't see why it's necessary that foreign investors in particular be able to short Chinese banks. It seems like if Chinese investors were allowed to short them then you would still get price discovery and at least any politically-sensitive "profits from bank failure" would stay in the country.

> What would China actually need to do to make the RMB a global reserve currency?

> The answer, it turns out, is a five-point plan that is conceptually straightforward, historically grounded, and politically impossible.

The answer, based on western economic theory. There are other options. An illustrative example is that a military empire can mandate tribute paid in their currency, essentially forcing global adoption. China hasn't shown more of an inclination to economic incentive though. Tie belt-and-roads development to economic integration and RMB will be used, even if there are huge flaws as shown by the economic theory.