It’s posturing by Xi. He’s in a very bad situation and trying to retain power against very tough party opposition. He’s flailing about trying to create external distractions. He’s a monster and the worst thing that ever happened to China since Mao (his hero).
I don’t think it’s working. China is bankrupt. To think the Yuan will be the new reserve currency is mad. The US currency is crap too, but it’s the best the world has right now.
Evergrande is the tip of the spear.
You make a number of excellent points.