China sees the yuan vs. dollar rivalry like Pepsi vs. Coke, expert says — ‘never the market leader, but serviceable in a pinch’

China's yuan remains a distant challenger to the U.S. dollar's global reserve dominance, with one expert likening the rivalry to "Pepsi vs. Coke" — never the market leader, but serviceable in a pinch. The key constraint, according to the analysis, is the limited pool of renminbi assets that foreigners can freely buy and sell; without a far larger supply, the yuan "cannot come close to replacing the dollar." The comparison underscores that while the yuan can serve as a backup in bilateral trade and sanctions-avoidance scenarios, structural capital controls keep it from rivaling the dollar's liquidity and depth. Watch for whether Beijing loosens capital controls or expands offshore renminbi access, steps that would be prerequisites for any serious challenge to dollar hegemony.