China's gradual shift away from the dollar raises concerns after Xi-Trump talks

At a summit in Washington, Xi Jinping and Donald Trump exchanged views on tariffs, agricultural quotas and critical minerals, yet a less visible agenda involved China’s effort to lessen reliance on the U.S. dollar. Over recent months Beijing has trimmed its holdings of U.S. Treasury securities and is working to increase the global use of the yuan through new financial infrastructure. Such a pivot could draw heightened attention from U.S. policymakers and market participants.

Charles Chang, a finance professor at Fudan University, suggested that while the issue may have surfaced in the talks, it is unlikely to be codified in any formal accord because sovereign debt management is a sensitive capital-allocation matter. The shift underscores broader strategic competition between the two powers and may influence future economic relations.