Core Viewpoint - The reliance of emerging market countries on the US dollar in international transactions is decreasing due to geopolitical changes, rising tariff barriers, and fluctuations in the US interest rate cycle, leading to an increase in the use of the Renminbi (RMB) in cross-border transactions [1][2]. Group 1: RMB Internationalization - The 138th China Import and Export Fair (Canton Fair) has seen an increase in the use of RMB as a trade settlement currency among exporters [2]. - Reports from institutions like China Construction Bank and CICC indicate significant growth in the use of RMB for cross-border trade settlement and financing from 2024 to 2025 [2]. - The RMB's acceptance as a trade settlement currency is particularly notable in "Global South" economies, including Southeast Asia, the Middle East, Africa, and Central Asia [3]. Group 2: Company Experiences - Suzhou Grun德 Electric Co., Ltd. has seen an increase in RMB trade settlements initiated by European clients, with RMB transactions now accounting for a growing portion of their business [6]. - Similar trends are observed at CaiXun Industrial (Shenzhen) Co., Ltd., where the proportion of RMB settlements has risen from 0% to approximately 40% for Russian clients [7]. - Jiangsu Jinpeng Group has reported a significant increase in African clients opting for RMB settlements, with the number of such clients doubling from last year [7]. Group 3: Cross-Border RMB Settlement Data - In June, the Bank of China reported that the cross-border RMB settlement volume exceeded 43 trillion yuan, a 31% year-on-year increase, while the cross-border RMB clearing volume reached 131.4 trillion yuan, up 49% [8]. - The CICC report highlighted the weakening credibility of the US dollar due to its misuse and the imposition of tariffs, suggesting a shift towards a more fragmented and diversified global monetary system [8]. Group 4: Challenges and Outlook - Despite the positive trends, companies face challenges in using RMB for international transactions, including low liquidity and high financial costs associated with offshore RMB [11]. - A survey indicated that 60% of companies cited low liquidity and high costs as major barriers to using RMB, while 50% reported that counterparties were unwilling to use RMB [11]. - Optimism remains, with 57% of domestic companies and 69% of foreign companies expecting to increase their use of RMB in cross-border trade settlements by 2025 [12].

Core Insights - The article highlights the significant transformation of the Renminbi (RMB) on the international stage, marking its rise to become the fourth largest payment currency globally, surpassing the Japanese Yen [1][2]. Group 1: RMB's Internationalization Progress - The RMB's share in global payments has increased from 1.88% in 2015 to 6.93% in July 2025, reflecting a rapid ascent in its international status [2]. - The RMB's rise is attributed to its surpassing the Yen, which has a payment share of 6.71% [1][2]. - The RMB is now positioned behind only the US Dollar (42.68%), Euro (33.15%), and British Pound (7.64%) in the global payment hierarchy [2]. Group 2: Drivers of RMB Internationalization - The cross-border trade settlement in RMB has seen a robust growth, with a reported amount exceeding 23.7 trillion yuan in the first half of 2025, a year-on-year increase of 15.8% [5]. - The attractiveness of RMB financial assets has grown, with overseas holdings of RMB-denominated assets reaching 10.2 trillion yuan, up 18.6% [5]. - China has signed currency swap agreements with 43 countries, totaling over 4 trillion yuan, facilitating RMB's international circulation [5]. - The development and pilot testing of digital RMB have expanded, with transaction amounts surpassing 1.5 trillion yuan and over 420 million personal wallets created [5]. Group 3: Implications of RMB's Rise - The increased internationalization of the RMB is expected to reduce exchange rate risks and transaction costs for Chinese enterprises, potentially saving hundreds of billions of dollars annually [8]. - The RMB's share in global foreign exchange reserves has reached 3.82%, positioning it as the third largest reserve currency, surpassing the Yen and Pound [8]. - The rise of the RMB contributes to a more diversified and stable global financial system, reducing reliance on the US Dollar and mitigating systemic risks [8]. Group 4: Future Outlook - Predictions indicate that the RMB may surpass the British Pound within the next 3-5 years, becoming the third largest payment currency globally [10]. - The expansion of digital RMB applications is anticipated to drive further internationalization of the currency [10]. - The RMB's usage is expected to grow in emerging markets, while its penetration in developed economies will focus on reserves and investment [12].

Core Viewpoint - The People's Bank of China and six other departments have jointly issued guidelines to enhance financial support for new industrialization, focusing on improving cross-border financial services and expanding high-level bilateral open development space [1] Group 1: Financial Support Measures - The guidelines aim to optimize foreign trade financial products and services for the manufacturing sector [1] - A special action plan will be launched to assist small and medium-sized enterprises (SMEs) in going global [1] - The facilitation level of current account income and expenditure will be improved to ensure safe and efficient cross-border trade settlements for enterprises [1] Group 2: Cross-Border Trade and Currency - The scale of cross-border trade in Renminbi (RMB) settlements will be expanded to better meet the foreign trade settlement needs of enterprises [1] - Policies to enhance the convenience of trade income and expenditure for quality enterprises will be promoted [1] Group 3: Financing and Investment - Support will be provided for eligible enterprises to conduct pilot projects for cross-border cash pool operations, facilitating the transfer and use of funds domestically and abroad [1] - There will be an expansion of export credit insurance and credit investment in the foreign trade sector [1] - The scope of pilot projects for cross-border financing for high-tech enterprises, specialized and innovative SMEs, and technology-based SMEs will be broadened [1] Group 4: Foreign Investment Facilitation - The pilot scope for foreign enterprises' reinvestment exemption from registration will be expanded to facilitate domestic equity investments [1] - The Qualified Foreign Limited Partner (QFLP) pilot business will be optimized and improved [1] - A negative list for the use of capital project income will be refined to enhance the efficiency of foreign capital utilization by enterprises [1]