The Dollar Underpins American Power. Rivals Are Building Workarounds

May 29, 2019

Author: 

Justin Scheck and Bradley Hope

Publication: 

The Wall Street Journal

Related Country: 

  • China
  • India
  • United States

The re-imposition of U.S. economic sanctions on Iran has spurred Chinese, Indian, and Russian efforts to develop systems for international trade less reliant on the American dollar. China has established deals with Pakistan, Turkey, and other countries to conduct trade in yuan rather than dollars. India, meanwhile, has developed an alternative, rupee-based system that has allowed Indian companies to conduct business with Iranian counterparts such as Iran Tractor Manufacturing Company, which the U.S. Department of the Treasury considers a "specially designated global terrorist." Since January 2019, hundreds of Indian shipments have gone to U.S.-sanctioned Iranian businesses. American companies, including the Indian subsidiary of Colorcon Incorporated, have used the Indian system to sell products to Iranian state-owned enterprises.