China pushes renminbi toward global finance as a hedge against dollar dominance
Beijing is accelerating efforts to make the renminbi a widely used international currency, aiming to reduce reliance on the U.S. dollar.
Xi Jinping’s 2024 directive called for China to become a leading financial power, describing a strong currency as one that is used for international trade, investment and as a reserve asset. Since then, China has broadened the reach of its Cross-Border Interbank Payment System, which now links thousands of banks in nearly 200 countries, and more than doubled renminbi loans to foreign borrowers between 2023 and mid-2026.
The state is also promoting “China prices” - renminbi-denominated benchmarks for commodities such as lithium, to lessen dollar exposure. State-owned firms have been instructed to prioritize renminbi settlement with foreign partners, a policy already boosting regional use in ASEAN. By building payment, pricing, financing and risk-transfer infrastructure, Beijing aims to create a viable alternative to the dollar and deter future U.S. financial weaponisation.
Why it matters
China’s push for a global renminbi could reshape international finance and limit U.S. economic leverage.
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