I think this is outdated thinking, there is significant capital flight from the west into China right now because of geopolitical tensions and low yields in Western bonds. China doesn't need a reserve currency, that's a loaded term made up by the IMF, what China needs is a stable currency backed up by real productivity growth and sane monetary policy, that maintains value vis-a-vis other assets.
In terms of economy, currently China is the only major economy expected to grow this year, I think post covid will be a new brave world, if anything people have lost trust in the USs ability to maintain social cohesion and political stability or even host a competent response to major crisis. I think there will be a paradigm shift in how we view the trustworthiness of currencies.
