China should leverage buying power to boost yuan’s use in trade: former PBOC adviser

China should leverage its massive buying power to boost imports settled in yuan and shift towards a more balanced trade structure, to accelerate the currency’s global use, according to a former central bank adviser.

The proposal signals a potential opportunity for the yuan’s internationalisation, years after Beijing kicked off the process in 2009 by allowing selected exporters to be paid in the Chinese currency.

“China is the world’s largest goods exporter, but the yuan’s international standing still lags far behind,” said Liu Shijin, a former vice-minister at the Development Research Centre of the State Council, according to a report by the state-owned Securities Times.

Speaking at a Peking University forum on Saturday, Liu, a former member of the People’s Bank of China’s Monetary Policy Committee, urged the country to significantly narrow this gap during the 15th five-year planning period (2026-2030). He noted that, while maintaining export competitiveness, China should also increase the share of imports settled in yuan.

Liu’s comments, which echoed similar remarks he 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. The 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.

As the world’s major buyer of energy and raw materials, China is a vital market for foreign producers, given that more than 400 million of its 1.4 billion people are considered middle class. Last year, the country imported US$2.58 trillion worth of goods, according to official data.

South China Morning Post