China has laid out fresh plans to expand the global role of its currency, the renminbi, as geopolitical tensions and uncertainty around U.S. economic policy put pressure on the dominance of the US dollar.
In recent weeks, market volatility driven by President Donald Trump’s trade policies and broader economic unpredictability has weighed on the dollar, sending investors toward traditional safe havens such as gold. Against that backdrop, Beijing sees an opening to promote the renminbi as a more widely used international currency.
Over the weekend, Qiushi, the Communist Party’s flagship journal, published remarks from President Xi Jinping outlining a long-term goal of turning the renminbi into a global reserve currency. Xi said China should work toward building a strong currency used broadly in international trade, supported by a powerful central bank and deep financial markets.
China has spent more than a decade trying to internationalize the renminbi, but recent developments have added momentum. Trump’s repeated use of tariffs and sanctions has prompted some countries to rethink their reliance on the dollar, while changes at the Federal Reserve have added to uncertainty around U.S. monetary policy.
Beijing has taken steps to make the renminbi more attractive, including opening access to Chinese financial markets, streamlining cross-border payments, and expanding trade ties with developing economies. The currency’s use in trade settlements surged after Western sanctions on Russia, as China continued trading with Moscow.
Still, experts say replacing the dollar remains unlikely. The dollar still accounts for more than half of global foreign exchange reserves, while the renminbi represents only a small share. Capital controls and Beijing’s preference for managing its currency value continue to limit broader adoption.
Even so, analysts say China does not need to overtake the dollar to succeed. Expanding the renminbi’s role, even gradually, would give Beijing greater influence in global finance and reduce its exposure to U.S. financial pressure.
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