INTERMUN 2023 RESEARCH AND SPEECHES

AGENDA 1: DISCUSSING THE ADVANTAGES AND DISADVANTAGES OF DE DOLLARIZATION,

AND THE INTRODUCTION OF OTHER MORE STABLE CURRENCIES AS SUBSTITUTES.
GSL SPEECH:
The delegate of China would like to address a crucial matter that affects the stability and
fairness of the global economy. It is time to reconsider the role of the US dollar as the
international currency reserve and embrace a more inclusive and balanced system.
For decades, the US dollar has enjoyed a privileged position, granting the United States
significant influence over global financial affairs. However, economic crises, trade disputes,
and geopolitical conflicts have highlighted the need for a more diversified and resilient
international currency reserve.
China believes it is crucial to explore alternative options to the US dollar in order to reduce
reliance on any single currency. Our goal is to promote the use of multiple currencies and
create a more diversified and self-sustaining economic ecosystem. This approach will not
only enhance regional trade but also contribute to greater financial stability globally. It is
important to note that our intention is not to replace the US dollar with another specific
currency, but rather to ensure access to global markets and mitigate risks during geopolitical
crises.
The time for change is now, and China is ready to play a responsible and constructive role in
shaping the future of global finance.
Thank you.

RESEARCH:
Saudi Arabia: China buys 25% Saudi Arabia’s oil exports. Saudi Arabia is a part of China’s Belt
and Road Initiative. It is a global multibillion dollar project. China has also made a deal in
which state-owned Saudi Aramco will acquire a 10% share in Chinese oil refiner Rongsheng
Petrochemical, $3.6 Billion. However, these deals are being made in Chinese Yuan.

 The Belt and Road Initiative is a massive China-led

infrastructure project that aims to stretch around the globe.

 Some analysts see the project as a disturbing expansion of

Chinese power, and the United States has struggled to offer a
competing vision.
  The initiative has stoked opposition in some Belt and Road
countries that have experienced debt crises.

Argentina: Argentina was also another country which recently announced they would start
paying for Chinese imports in Yuan and not USD. In April 2023, Argentina said it was planning
on paying $1 Billion worth of imports in Chinese Yuan and $790 million of monthly imports
also in Yuan.
Russia: Russia and China intend to increase the diversity and supply of agricultural products
and food exports to each other. Russia’s economy, despite the sanctions, has remained
strong and will very likely stay strong for some years to come. One of the reasons is China
and the fact that many deals will now be done in Yuan, not dollars.

Moderated Caucus:
Why should the Chinese yuan replace the US Dollar?
1.China's Impressive Economy: China boasts one of the world's largest and fastest-growing
economies, which gives the yuan the potential to replace the dollar as a global currency.
2. Size and Rapid Growth: China's large population and expanding middle class provide a
massive consumer base for the yuan, making it an attractive currency for international trade
and investment.
3. Decreasing Reliance on the Dollar: Recent events, such as trade tensions and geopolitical
conflicts, have prompted countries to reduce their reliance on the dollar, creating an
opportunity for the yuan to gain prominence.
4. Lower Trade Costs and Economic Clout: If the yuan becomes a reserve currency, China
would benefit from lower trade costs, increased demand for the yuan, and enhanced
economic influence compared to the United States.
5. Reserve Currency Status: The International Monetary Fund (IMF) has already designated
the yuan as a reserve currency, signaling its potential for global acceptance and use.
How do other countries benefit if the yuan replaces the dollar?
If the yuan were to replace the dollar as a global currency, other countries would benefit in
several ways:
1. Lower trade costs and economic clout: By using the yuan as a global currency, countries
can reduce transaction costs and currency exchange fees, leading to more efficient trade.
This can boost international trade and economic cooperation.
2. Decreased reliance on the dollar: As the world's dominant currency, the dollar's
fluctuations can impact other countries' economies. By diversifying their currency reserves
and reducing reliance on the dollar, countries can mitigate this risk and have more control
over their own economic stability.
3. Access to China's impressive economy, size, and rapid growth: China has the world's
largest population and its economy has been growing rapidly. If the yuan becomes a
dominant global currency, other countries can tap into China's market potential and benefit
from its economic growth.
4. Enhanced financial stability and security: The yuan's reserve currency status designated by
the IMF signifies confidence in its stability and resilience. By using the yuan, countries can
enjoy the perceived security and stability associated with a reserve currency, reducing their
exposure to financial risks.
5. Strengthened economic ties with China: As the yuan gains global acceptance, countries
that adopt it as a reserve currency can strengthen their economic ties with China. This can
lead to increased investment, trade opportunities, and bilateral cooperation.

YUANIZATION:
1. Diversification of currency reserves: Yuanization allows foreign countries to
diversify their currency reserves, reducing their dependence on Western currencies
like the US dollar. This helps mitigate risks associated with fluctuations in the value
of Western currencies and provides a hedge against potential economic
uncertainties.
2. Access to Chinese markets: Embracing yuanization can provide foreign countries
with greater access to the Chinese market, which is one of the largest and fastest-
growing economies in the world. This can lead to increased trade opportunities and
potential economic benefits.
3. Potential cost savings: Yuanization can potentially result in cost savings for foreign
countries by reducing transaction costs and exchange rate risks associated with
converting currencies.
4. Strategic partnerships with China: Adopting yuanization can strengthen diplomatic
and economic ties with China, fostering strategic partnerships that may lead to
further cooperation and mutual benefits.

The Chinese economy’s sheer size and rapid growth are impressive. China maintained
one of the highest economic growth rates in the world for more than a quarter of a
century, helping lift over 800 million people out of poverty in just a few decades. The
country is the largest exporter in the world and the most important trading partner
of Japan, Germany, Brazil and many other countries. It has the second-largest
economy after the U.S., based on the market exchange rate, and the largest based on
purchasing power.

AGENDA 2: Addressing the role and importance of free journalism in protecting

civil liberty and freedom of speech.

GSL SPEECH:

As the delegate of China, I stand before you today to shed light on our stance regarding
journalism rights. China recognizes the vital role that the media plays in promoting
transparency, accountability, and free expression. We believe in the power of journalism to
shape public opinion, hold governments accountable, and foster social development.

China has made tremendous progress in expanding access to information and providing a
platform for journalists to exercise their rights. We have witnessed the growth of a vibrant
media landscape, with thousands of newspapers, television channels, and online platforms.
Journalists in China enjoy the freedom to report on a wide range of issues and contribute to
the public discourse.

However, it is important to note that with freedom comes responsibility. China firmly
believes in responsible journalism that upholds the principles of accuracy, fairness, and
objectivity. We understand the need to strike a balance between journalistic freedom and
safeguarding national security, social harmony, and individual privacy.

China acknowledges that there have been instances where journalists have faced challenges
and restrictions. We are committed to addressing these concerns through dialogue and
cooperation. We value international exchanges and are open to constructive criticism that
helps us improve our media environment.

In conclusion, China is dedicated to creating an enabling environment for journalists to carry

out their work. We are committed to upholding and protecting journalism rights, while also
recognizing the importance of responsible reporting. Let us work together to foster a world
where the media can thrive, ensuring the free flow of information and the pursuit of truth.