The US dollar competitors are gaining strength as the Chinese Yuan is steadily climbing on the radar to score new highs. International use of the yuan is gaining steady momentum, while USD prospects are weakening rapidly. Why is the world gravitating towards the Chinese Yuan?

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Yuan Payments Hike: What’s Happening

According to a recent report by the SCMP, the Chinese Yuan is gaining strength internationally as one of the leading payment currencies. The data released by the PBOC noted a spike in the yuan’s internationalization usage in the first six months of 2025, with data signaling a hike of 35T yuan usage in cross-border transactions. This hike translates to nearly 14% increased usage of the Chinese currency, slowly catching up as a dollar rival.

Per Yang Feng, finance director for overseas marketing at Sieyuan Electric, 10% of his total company orders were priced and settled in Renminbi.

“Based on my calculation, 10 percent of our company’s total orders were priced and settled in renminbi.”

Who’s Driving the Yuan Surge?

Ped Yang: Non-Chinese clients were the first to explore renminbi-based transactions, with countries such as Pakistan, Thailand, Malaysia, Saudi Arabia, Uzbekistan, and Kazakhstan leading the charge.

“Yang said the willingness of the company’s non-Chinese clients to settle in yuan was highest among countries involved in the Belt and Road Initiative, such as Pakistan, Thailand, Malaysia, Saudi Arabia, Uzbekistan, and Kazakhstan.” As mentioned by the SCMP

Yang later emphasized the growing renminbi’s popularity, adding how the currency’s competitive interest rates are fueling the demand further.

Renminbi internationalization is advancing quickly,” he said. “As more Chinese firms go global, the use of renminbi will naturally rise. The renminbi offers notably competitive interest rates right now, which is a major factor in reducing our financing costs.”

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