Former PBOC Adviser Calls on China to Settle More Imports Using the Yuan
Liu Shijin, who served on the People’s Bank of China’s monetary policy committee and is now the Chief Advisor at the said that China needs to change how it conducts business with other countries over the next five years.
He underlined the necessity to keep a basic balance between imports and exports during this time of change. Last week, he talked about the need to recalibrate. Liu has many jobs, one of which is a well-known vice at the Development Research Centre.
Increase Imports To Make The Yuan More Liquid
In 2024, had a trade surplus of almost $1 trillion. Liu said that bringing in products and services for the identical amount in yuan will considerably increase the liquidity of yuan outside of China.
He said that encouraging a significant rise in the yuan’s value will make it more appealing to people worldwide and give Chinese people more purchaseing power abroad. He added that this step would stimulate more spending abroad and change the way commerce works.
Trade Imbalance Faces More Global Pressure
Liu’s comments come at a time when the world is paying more attention to China. French President Emmanuel Macron has warned that the EU may impose tariffs on China if it doesn’t close its growing trade disparities.
The trade imbalance with China has grown by 60% since 2019, and France’s own trade deficit is increasing against the $19 trillion economy. Macron said that U.S. protectionism and China pose a threat to Europe’s industrial core, calling them the “adjustment market” in a position that is poor for Europe’s survival.
Beijing Promises to Boost Domestic Consumption
According to reports from the Communist Party Politburo, China’s top leaders promised to make growing domestic demand a top priority in 2026 to counter global trade threats.
In October, retail sales fell for the fifth month in a row, even as exports rose and the trade surplus exceeded $1 trillion. aims to reduce its reliance on exports by focusing on a strong domestic consumption strategy over the next five years.
More Yuan Tools for Global Push
Liu suggested that the yuan be used more internationally because of difficultys with the dollar and concerns about the Fed’s independence. He indicated that more offshore financial excellents, such as bonds, equities, funds, and derivatives, are valued in yuan.
He said, “The amount of yuan used around the world should go up to show better how significant the Chinese economy is.” Liu was a advisor for the People’s Bank of China from June 2018 to 2022.
