The CPC’s financial vision under Xi: The ascent of China and the yuan

The global financial system has reached a critical threshold where the post-Cold War order, established around the hegemony of the U.S. dollar, is no longer accepted without question. While the dollar remains the world’s preeminent currency, its supremacy is no longer as absolute or uncontested as it once was. Geopolitical tensions, trade wars, the normalization of sanction-based policies, and the increasing prudence of central banks are compelling sovereign states to adopt new positions through national currencies. At the heart of this transformation lies China. Beijing’s ambition to reshape the global order is manifested not only through its manufacturing prowess, trade volume, or technological breakthroughs but, increasingly, through the power of its currency.

This ambition is by no means coincidental. The Communist Party of China (CPC) and its leader, Xi Jinping, have long regarded financial development as a fundamental pillar of national strength and sovereignty. Comprehensive assessments published in Qiushi, the CPC’s flagship theoretical journal, explicitly reveal that China’s objective transcends mere economic growth; the strategy to become a “financial superpower” has now been elevated to a matter of state policy. In Xi Jinping’s paradigm, finance is not a neutral mechanism left to the vagaries of the market. Rather, it is an instrument of power—one guided under Party leadership to serve the real economy and prioritize national interests.

The Financial Development Path with Chinese Characteristics

It is at this juncture that the “financial development path with Chinese characteristics” diverges from Western models. While the West’s financial philosophy is predicated on individual profit, capital liberalization, and market autonomy, the Chinese model views finance as an extension of social stability, development, and state capacity. The emphasis on Party leadership, risk management, cautious progression, and rule-based innovation—all underscored by Xi Jinping—demonstrates that China has deliberately situated its financial system within an ideological framework. This approach is the product of a “state intellect” that does not view financial crises as inevitable fate, but rather defines them as manageable risks.

The most visible and critical pillar of this strategy is the yuan. In Xi’s rhetoric, the yuan is treated as the primary symbol of China’s global role. The Chinese leader has set a clear objective: for the yuan to become a robust currency widely utilized in international trade, investments, and foreign exchange markets, and firmly embedded within the reserves of central banks. This constitutes a direct challenge to the dollar-centric global financial order.

The Rise of the Yuan: A Symbol of China’s Global Power

Current figures indicate that this objective is no longer merely a theoretical vision; it is finding a tangible resonance on the ground. According to data released by the People’s Bank of China in the first half of 2025, cross-border yuan usage reached 35 trillion yuan, recording a 14% increase on an annual basis. This surge is directly linked to the fact that infrastructure loans provided under the Belt and Road Initiative (BRI) are increasingly denominated in yuan. In the projects it finances, China is not merely exporting capital; it is circulating its currency, thereby expanding its global sphere of utility.

The global landscape points toward a similar shift. Over the last decade, the U.S. dollar’s share of global foreign exchange transactions has receded from approximately 60% to the 40% range, signaling the dawn of a new era where dollar dominance is no longer absolute. This shift is even more pronounced in China’s own foreign trade. While the U.S. dollar’s share in China’s external trade transactions stood at 80% in 2010, by 2023, yuan usage surpassed 50%, overtaking the dollar for the first time. Furthermore, according to SWIFT data, the yuan’s share in global currency transfers has reached 4%. This is not merely a technical adjustment; it is a potent indicator that China is consolidating its economic sovereignty within the monetary realm.

The yuan’s most striking progress is evident in the fields of trade and financial transactions. Its share in global payment systems is rising rapidly, securing its place among the world’s top five most-traded currencies in foreign exchange markets. Data from the People’s Bank of China shows that cross-border yuan transactions are growing at double-digit rates annually. The Belt and Road Initiative, the BRICS New Development Bank, the Asian Infrastructure Investment Bank (AIIB), the use of local currencies in energy trade, bilateral trade agreements, and non-dollar payment mechanisms are all being deployed as geopolitical and financial instruments to support the internationalization of the yuan.

It is clear that this rise is the result of a deliberate state policy, further bolstered by payment infrastructures. China’s Cross-Border Interbank Payment System (CIPS) is now active in over 110 countries. Beyond serving as an alternative to SWIFT, this system forms the backbone of a China-centric financial network. The 20% increase in yuan usage recorded in 2024, particularly with Belt and Road countries, renders the geopolitical impact of this network even more visible.

Yuan Usage and Türkiye

This transformation is not limited to Asia or Africa; Türkiye has also become a concrete participant in this process. The three-year local currency swap agreement signed between the People’s Bank of China and the Central Bank of the Republic of Türkiye—renewed as of 2025—has reached a volume of 35 billion yuan and 189 billion Turkish liras. During the same period, the opening of the “Turkish RMB Clearing Bank” in Istanbul by ICBC, one of China’s largest banks, marked a significant step in institutionalizing the yuan’s financial infrastructure in Türkiye. Furthermore, the 2.9 billion yuan loan provided to Turkish Airlines by the Bank of China heralded a new era aimed at conducting trade and financing between the two nations directly in yuan.

The truly remarkable aspect of the yuan’s ascent is that these developments are the product of a centralized strategy. China is building monetary power beyond financial hubs—in ports, railways, energy corridors, aviation financing, and trade routes. In this regard, the yuan is evolving from a conventional reserve currency into a strategic instrument that expands China’s global sphere of influence.

Xi Jinping’s Vision of a Financial Powerhouse

Xi Jinping’s definition of a “strong financial nation” reflects this holistic perspective: a potent national currency, an effective central bank, globally competitive financial institutions, financial hubs capable of attracting international capital, and a state capacity to dictate the rules of finance. These goals clarify that China views the financial element as a strategic domain as vital as defense or diplomacy.

To be sure, this path is not without its obstacles. China faces significant hurdles in areas such as capital movement restrictions, legal transparency debates, and market depth. However, China’s distinction lies in its aim to overcome these barriers through long-term state planning rather than denying them. The rise of the yuan is envisioned not as a sudden leap, but as a controlled, cautious, and patient ascent.

The Architects of Global Transformation: Xi Jinping, the CPC, and China

At this stage, the yuan has not yet displaced the dollar. However, what is now clear is that the global financial system is no longer unipolar, and China is one of the strongest contenders in this new multipolar order. We are entering an era where national currencies are regaining significance, finance is being repoliticized, and economic sovereignty is defined by monetary control. China is not merely observing this era; it is aspiring to shape it. The yuan serves as the economic vehicle of this ambition, the Communist Party of China acts as the political engine of the process, and Xi Jinping emerges as the architect of this transformation. The coming years will see both the rewriting of economic balances and the very definition of money itself. In this narrative, China has taken its place on the stage as a power intent on rewriting the rules of the game.