China should promote yuan’s globalisation through cooperation not conflict with US dollar, report says
- Beijing should sign a free-trade deal with Britain as soon as possible and push for better trade and investment cooperation with the EU, Renmin University says
- Promoting global trade will help stimulate use of yuan around the world, experts say
China should avoid going head to head with the US dollar as it seeks to promote the use of the yuan around the world and instead make London a key offshore centre for the yuan while developing opportunities in countries linked to its Belt and Road Initiative, according to new research.
Beijing should also sign a free-trade agreement with Britain as soon as possible, and push for better trade and investment cooperation with the European Union, Renmin University of China said in a report released on Saturday at the International Monetary Forum in Beijing.
The government should also put the internationalisation of the yuan into the context of providing an alternative to the US dollar rather than competing with it for dominance, said the report, which was produced by the university’s International Monetary Institute.
The study came just a week after Chinese President Xi Jinping and US President Donald Trump agreed to resume talks to resolve the trade war and refrain from imposing any further tariffs.
“Friction and competition can spill over into investment, technology, finance, politics and other areas,” the report said.