This is another video by Inside China Business, it conflates US Treasuries and debt in general, as means of propping up the US budgets and as security in banking (though he does not go into the Euro-Doller), and the SWIFT banking system virtually all banks are connected to. Throws in seizure of Russian assets as another (loose) argument to explain loss of trust in the former.
He moves to bond yields and by extension interest rates. Those in RMB were lower.
Finally he ends in presenting China as one-stop-shop–provider for solutions such as infrastructure projects. Those are financed in RMB by those countries, and they borrow them from chinese banks. (The RMBs don’t leave the country, services and goods are = with debt on the same side.)
This is no good video to understand either of the mentioned mechanics, though admittedly you can only press so much into 7 minutes. There’s too many places to begin for a concise comment that’s no wall of text. I will cherry-pick:
Divestment from US markets is one contributor to unfavourably increasingly yields
The RMB is not freely traded, neither is the national debt. I could offer US Treasuries (or rather, what I got on the secondary market) as security to see “USD” flow towards whatever I need, like another bank account to make a merchant hole for a purchase in USD. RMB not so much.
National debt, to paint with a broad brush, is usually auctioned off with some yields on top to make it worthwhile. Countries not limited to China are reducing their holdings: a certain amount is also offered on the market before maturity. To make fresh i. e. long-term “debt” competitive enough, the market on the other side will enter into the trade only at increasingly higher yields (which must beat inflation by the way; compare Türkiye’s).
If you don’t need the USD, to pick a currency, in anticipated trade, to pick a use, this “debt” to outsiders becomes even more unattractive given alternatives (which is a big part why Switzerland and Germany get away with yields close or below zero).
That’s why usually you’d think outstanding debt together with its currency, or rather exchange of anything in relation to rest of the world. What we currently have is a steady and managed divestment out of US debt at the same time as the USD. On top of that the world is learning where to find alternatives to US goods and services (be it domestic).
shit i would love to comvert my debt into rmb. the terms are probably less shitty maybe assuming the holder had to comply with some kind of something, and if an exec with the holding entity was a real asshole, he might get executed about it.
