The world is changing. Geopolitical shifts, particularly Donald Trump's second term as US president, seem certain to reshape the global economy, trade dynamics, and the investment landscape. Talk of tariffs and protectionism has raised questions about the internationalization of the Chinese currency, despite its growing presence in the global marketplace over the past decade. Despite this backdrop, however, we believe there is great potential for the RMB to play a more significant role in global markets in this new era.

In this article, we will explore a number of structural factors that are boosting use of the RMB in global trade and making it an increasingly good fit for investors looking for non-US dollar assets. These factors include easier market access, greater liquidity and lower foreign-exchange volatility. We are also relatively optimistic about Chinese exports as the economy broadens and more Chinese companies expand into new export markets – many of them in the faster-growing and unaligned economies of the Global South. China's continued leadership in many areas of advanced technology and in the production of innovative digital, electronic, autonomous goods also supports its export competitiveness.