Former People's Bank of China adviser Liu Shijin has urged China to leverage its massive buying power to increase yuan-settled imports, aiming to accelerate the currency's internationalization. The advice gains renewed relevance amid the yuan's recent appreciation and rising US dollar uncertainties under President Donald Trump.
Liu Shijin, a former vice-minister at the Development Research Centre of the State Council, stated in a report by the state-owned Securities Times that China should use its massive buying power to boost yuan-settled imports and shift toward a more balanced trade structure, accelerating the currency's global use.
“China is the world’s largest goods exporter, but the yuan’s international standing still lags far behind,” Liu said. His comments, echoing similar remarks made a couple of months ago, have taken on renewed significance amid the yuan’s recent steady appreciation and growing concerns over the US dollar due to policy uncertainty under US President Donald Trump. These worries have been exacerbated by Washington’s recent moves over Greenland and pressure on US allies.
A strong currency is marked by a large share of imports settled in the home currency, Liu said on Saturday, adding that with China’s population roughly four times that of the United States, it should be fully possible for China to build a consumer market far larger.
The suggestion aims to balance trade by expanding imports and promote the yuan's role in global transactions, despite China's position as the top exporter where the yuan's international use still trails.
