Russian President Vladimir Putin’s confirmation of a near-total de-dollarization of Russia-China trade directly targets a core concern of the previous Donald Trump administration: the erosion of US dollar hegemony. By moving a trade relationship worth hundreds of billions of dollars into rubles and yuan, Putin is actively challenging America’s global financial power.
The text explicitly notes that undermining the dollar’s dominance was one of the biggest concerns for the Trump administration. Putin’s announcement is a clear signal that Russia and China are not just weathering US pressure but are proactively working to dismantle the system that gives American sanctions their bite.
This financial strategy is backed by formidable economic growth, with bilateral trade between the two nations having increased by around $100 billion since 2021. This massive volume ensures that the ruble-yuan trading system is not just symbolic but a significant and functioning alternative to the dollar.
As Putin heads to the SCO summit, this challenge to American financial power will be a key part of his pitch to other nations. He is demonstrating a viable pathway for reducing dependence on the US, an issue that resonates with many countries seeking greater economic and political sovereignty.