I think this is a significant development in the long sequence of events that are unfolding. The unveiling of this new international transaction system was delayed from last year to later this year. I think it's success/failure will have a large impact on the ultimate path of the dollar over the next decade. If it is embraced quickly, the threat to the dollar is accelerated. As such, there will be highly influential parties interested in creating obstacles to its success.
Even if its initial implementation is not successful, it does set the groundwork for organized challenges to U.S. dollar hegemony. It's a significant event, but is probably consistent with the time frame that I've identified. In the short run, it will force countries to "choose a side". I think we can guess who they are already, but it will put them out there visibly. This is one of the reasons it may face resistance, i.e. countries will have to openly spite the U.S., which is usually not in their best interest.
I think keeping the Chinese population in chains is a non-factor. The real factors exist at the much higher political level. Everyone else is a pawn. The politicians are smart enough to keep the pawns fed and entertained.

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