Zha Xiaogang, a researcher at the Shanghai Institutes for International Studies, said Beijing wants to see a better-balanced international monetary system consisting of at least the dollar, euro and yuan and perhaps other currencies such as the yen and the Indian rupee.
Competition among major currency issuers and a wider menu of options when investing, trading or seeking a store of value would produce better results for the world economy, Zha argued.
"The shortcomings of the current international monetary system pose a big threat to China's economy," he said. "With more alternatives, the margin for the US would be greatly narrowed, which will certainly weaken the power basis of the US."
Zha's comments were in a paper prepared for a seminar in Bahrain this week on the geopolitics of currencies organized by the International Institute for Strategic Studies, a London think-tank.