As US economic clout diminishes, China and Europe work to cut dollar reliance

The European Union’s initiative to cut its reliance on the US dollar is the latest show of scepticism towards American efforts to rebuild multilateralism amid the emergence of new regional powers such as China, analysts said.

The European Commission outlined plans on Tuesday to increase the role of the euro in international payments and investments, so the European Union (EU) becomes less dependent on outside financial centres and the US dollar system.