China’s De-Dollarization Drive Stalls as Yuan Stays Under 5% of Global Trade
Updated
Updated · Foreign Policy · Jun 24
China’s De-Dollarization Drive Stalls as Yuan Stays Under 5% of Global Trade
2 articles · Updated · Foreign Policy · Jun 24
Summary
Beijing’s latest June 17 blueprint to expand offshore yuan trading and central-bank swap lines underscores a push that has built infrastructure but still failed to generate broad foreign demand.
Less than 5% of global trade is settled in yuan, even though Chinese firms now use renminbi for about 30% of their own trade, showing adoption remains largely tied to transactions involving China.
Capital controls and a thin clearing network are major obstacles: offshore yuan deposits were just $234 billion in early 2025 versus $15 trillion in dollar assets abroad, and about 80% of CIPS transactions still rely on SWIFT.
The same pattern holds for digital payments: e-CNY has logged 3.3 billion transactions worth $2.3 trillion since 2020, but daily flows are only about $6 billion, far below Alipay and WeChat Pay’s combined $150 billion-plus.
Outside China, uptake is weaker still—mBridge handles roughly four payments a day worth $50 million, while dollar-pegged stablecoins have grown to $317 billion, suggesting global users still prefer dollar-linked tools unless sanctions leave no alternative.