“In recent years, the dollar has gone in only one direction and that is down,” said Huang, 45, in his second- floor office in Pingxiang, a town set amongst karst limestone hills and sugar-cane fields in China’s southwest Guangxi Zhuang Autonomous Region, three kilometers (1.9 miles) from Vietnam. “Settling our orders in yuan removes a major risk.”The dollar is a fiat currency. That means it is worth exactly what people think it is worth. So do you really think the US government can print money, and issue debt indefinitely, and people will always think it is a good currency? Neither do I.
So China will move slowly. But they will move away from the dollar. They really can't afford to do anything else.