Beijing Challenges Dollar Dominance with Strategic Push for Global Renminbi
Beijing, Sunday, 8 February 2026.
Beijing is explicitly maneuvering to dismantle the US dollar’s hegemony, confirmed by the January 2026 publication of President Xi Jinping’s strategic address. Framing the renminbi as a stable, moral alternative to a “lawless” Wall Street—highlighted by recent Western banking controversies—China is aggressively positioning its currency as the bedrock of a new global financial architecture. The strategy is already yielding tangible results: renminbi-settled trade surged 11% in 2025 to nearly $2 trillion, with nations in the Global South increasingly bypassing the dollar for debt and trade settlements. By leveraging the “polycrisis” affecting Western markets and strengthening financial ties with partners like the UK, Beijing is not just seeking participation but leadership in global finance. This pivot represents a calculated effort to insulate developing economies from Western volatility while securing China’s status as a central financial powerhouse.
A Moral and Strategic Pivot
The release of President Xi Jinping’s speech transcript on January 31, 2026—originally delivered in January 2024—marks a definitive escalation in Beijing’s financial diplomacy. In the text, President Xi explicitly outlines his ambition to elevate the renminbi to the status of a “global reserve currency,” aiming to transform China into a “financial powerhouse” capable of influencing international pricing systems [1]. Crucially, Xi employs a moral argument to distinguish Chinese financial governance from its Western counterparts, asserting that China’s approach must benefit the general population rather than serving “capital and a small number of wealthy individuals” [1]. This ideological framing is timed to coincide with growing scrutiny of Western financial institutions; just weeks prior to the speech’s publication, US Senator Ron Wyden characterized Wall Street as having a “pervasive culture of lawlessness” [1]. This criticism follows revelations that the Bank of New York Mellon took over a decade to flag 270 wire transfers totaling $378 million related to Jeffrey Epstein, a failure now being utilized in information campaigns to challenge US moral authority [1].
Accelerating Trade Settlements
Beyond the rhetorical offensive, Beijing is rapidly expanding the renminbi’s utility in the real economy. In 2025, the volume of trade settled in renminbi surged to nearly $2 trillion, representing an 11% increase over the previous year [2]. The currency is now used to settle 39% of China’s goods trade, a proportion that has quadrupled over the last eight years [2]. This shift is being driven by practical necessities in the Global South; for instance, Zambia has agreed to collect taxes and repay loans in renminbi to circumvent acute US dollar shortages [2]. Similarly, Chinese corporations are capitalizing on this trend to expand their market share, with executives at firms like Siglen Elevator reporting that 30% of their international sales are now settled in the Chinese currency [2].
Navigating the ‘Polycrisis’
The impetus for this de-dollarization is reinforced by what analysts describe as a “polycrisis” of geopolitical instability and volatile US trade policy [3]. The unpredictability of the US regulatory environment was highlighted in 2025 when average tariffs on goods spiked to 127.2% in May before falling by 79.7 percentage points to 47.5% in November [3]. Furthermore, the US naval blockade of Venezuela, ordered by President Trump in December 2025, has intensified concerns among developing nations regarding the safety of sovereign assets within the Western banking system [3]. As a result, the Global South is increasingly exploring “de-linking” from the US-dominated global payments system, a topic slated for discussion at the 2026 BRICS Summit chaired by India [3].
Diplomatic Bridges and Future Outlook
In parallel with its efforts in the Global South, Beijing is re-engaging with Western financial hubs to solidify the renminbi’s infrastructure. On February 6, 2026, British Prime Minister Keir Starmer arrived in Beijing for the first UK prime ministerial visit in eight years, signaling a thaw in relations [4]. The meeting resulted in the establishment of a financial working group and the resumption of high-level security dialogues, building on the UK’s established role as a center for international renminbi business since 2012 [4]. As China aims to position itself as a responsible major power distinct from the US, it is effectively leveraging both moral narratives and economic pragmatism to reshape the global financial order [3][4].