China's yuan push aims at a backup role, not dollar rivalry

Zongyuan Zoe Liu, senior fellow for China studies at the Council on Foreign Relations, wrote in Foreign Affairs that China does not seek to make the yuan replace the dollar as the world's dominant currency. Liu argues that replacing the dollar would require open capital markets, which would threaten the Communist Party's control over capital allocation. Instead, Beijing promotes the yuan mainly to guard against U.S. weaponization of the financial system, similar to sanctions imposed on Russia after its 2022 invasion of Ukraine. Fortune reports that China facilitates renminbi use among firms in more than a hundred countries.