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GLOBAL FINANCE
As of early 2026, the Chinese yuan (renminbi/RMB) is experiencing a growing, yet still limited, role in global finance compared to China's dominant position in global economic output.
Key Findings:
Manufacturing Output: China produces nearly 30% of global manufacturing output. Global Trade & GDP: China accounts for approximately 16.6% of the world's GDP and 14.4% of global trade.
Currency Use in Payments: The RMB is the 5th most used currency for global payments, with a share of roughly 3.17% as of September 2025.
Currency Use in Reserves: The RMB accounts for approximately 1.93%-2.4% of global foreign exchange reserves. Trade Settlement: Approximately 30% of China's $6.2 trillion annual trade is now settled in yuan, up from 20% in 2022.
Key Trends & Strategic Directions:
Rapid Regionalization: China is "regionalizing" the currency, focusing on its use in trade, payments, and bilateral agreements with BRICS and the Global South.
"Prudently" Removed: The 15th Five-Year Plan (2026-2030) removed the word "prudently" from its push to internationalize the yuan, indicating a more aggressive approach to reducing dollar dependency. 5th Most Traded: The RMB is consistently ranked as the 5th most-traded currency worldwide.
Capital Controls: Despite rising trade use, the yuan's growth as a "store of value" (reserve currency) is hindered by China's managed capital account and partial convertibility.
CIPS Growth: The Cross-Border Interbank Payment System (CIPS) has seen rapid growth, particularly for non-USD trade settlement with nations like Russia.
China will account for nearly half of global manufacturing value added (MVA) in 2030, up from 6% in 2000.
Low-cost labor & government initiatives have made China a manufacturing powerhouse
*Excludes China. Source: UN Industrial Development Organization (2024)
VISUAL CAPITALIST
China's role - Public ENEMY #1 - pt 7
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