China is accelerating its push to make the yuan a dominant player in international trade, using global tensions and U.S.-led tariffs as a springboard to challenge the dollar’s longstanding dominance.
As more countries seek alternatives to the greenback, especially following the trade disputes sparked during Donald Trump’s presidency, China sees a strategic window to expand the yuan’s footprint in global commerce.
According to research from Renmin University’s International Monetary Institute, large businesses are increasingly favoring the yuan for cross-border transactions.
Settlements in Chinese currency climbed to 24% in the first quarter of 2025—up from 21.5% in mid-2024—highlighting growing momentum behind China’s efforts to internationalize its currency. Finance expert Yang Changjiang of Fudan University described the current moment as a critical opportunity for China to reshape the global financial landscape.
With 68% of surveyed firms now using the yuan for transactions and over half engaging in forex trading with it, Beijing’s ambitions appear to be gaining traction. The volatility in U.S. Treasury markets has further fueled this shift, as capital flows that once reflexively moved toward the U.S. are now hesitating. China’s strategy also aligns with the broader BRICS objective of building a multipolar financial world where Washington has less sway.
As markets react nervously to renewed trade measures under President Trump, ARK Invest founder Cathie Wood is taking a contrarian stance: she believes the current disruption could ultimately unlock more open markets and long-term growth.
As the global balance of financial power slowly shifts, China is making strategic moves to elevate the yuan as a serious alternative in international trade.
Despite recent signs of economic strength, billionaire investor Steve Cohen remains cautious about the U.S. outlook, warning that growth may be slowing more than the markets care to admit.
The U.S. government is reportedly preparing to loosen capital reserve requirements for major banks, a move that could reshape how financial institutions manage risk — and reignite debate over regulatory safeguards.