Currency Internationalization - China is intensifying efforts to internationalize the Renminbi (RMB) and decrease reliance on the US dollar [1] - RMB overseas lending is increasing significantly [1] - Beijing is creating more channels for foreign investment in Chinese bonds [1] - China has established an alternative payment system to circumvent US sanctions [2] - Several countries, including Angola, Ethiopia, and Kenya, have converted old dollar debts into RMB this year [2] Trade and Investment - A significant portion of the increase in RMB lending is in trade financing [1] - Beijing aims to reduce exposure to policies that weaponize the dollar [1] - More sovereign borrowers are issuing RMB debt due to relatively low interest rates in China [2] - China seeks to increase the RMB's role in global trade and investment while maintaining a closed capital account [3] Strategic Objectives - China does not intend to replace the US dollar as the dominant global currency [3]