De-dollarization is advancing at a rapid pace as the usage of the Chinese yuan has doubled since 2022. China is leveraging the growing discontent with the foreign policies of the White House and pushing its local currency ahead. The Communist country and other developing countries are benefiting from the ordeal and are taking inspiration from the Xi Jinping administration.
Trump’s trade wars and tariffs are a gift to China as they are advancing de-dollarization by promoting the Chinese yuan. The usage of the local currency has more than doubled since 2022, indicating that the trend is here to stay. The global financial world as we know it could soon be history, giving way to the new world order.
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De-Dollarization Reaches Peak as Usage of the Chinese Yuan Doubles
The data from World Trade Scanner shows that the usage of the Chinese yuan in trade was at 1.6% in 2022. Fast-forward to 2025, and it has now reached 3.36% in Q3 this year. That’s a jump of over 110% in just three years. The massive spike comes as China is pushing de-dollarization aggressively to promote the Chinese yuan.
However, despite the robust growth, it is much lower than the US dollar. Around 88% of all global trade is still settled in the US dollar, while the euro comes second at 30%. Even the Japanese yen commands settlements of over 15% to 17% and is five times ahead of the yuan. The Chinese yuan is only growing due to de-dollarization, and the Xi Jinping administration is making the most out of the growing discontent against the White House.
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“While the Chinese yuan still accounts for less than 4% of all international trade, it has doubled its figures since 2022. In addition, as Chinese banks transact using CIPS, a national SWIFT equivalent, this number might be undercounted,” said Josh Lipsky of the Atlantic Council on de-dollarization.