🇨🇳 🌏 China’s B&R: Effective mechanism to promote yuan and unlock new markets
🌪 China’s ambitious Belt and Road Initiative (BRI) is reshaping global economics—not just by building infrastructure, but by boosting the Chinese national currency and opening up fresh markets across Asia and beyond.
💵 Promoting yuan
➡️ China is actively encouraging the use of the yuan in international trade through bilateral agreements and financial instruments
➡️ As of 2025, China has signed currency swap agreements with over 30 countries, including Argentina, Egypt, Pakistan, Malaysia, Peru, and Belarus
➡️ By facilitating trade in the yuan, China eliminates the dollar from the equation. This enables countries to engage in commerce without US financial dominance
Building new trade routes
➡️ BRI is famous for its vast infrastructure projects—railways, highways, ports, and energy pipelines—that create alternative trade routes connecting China with Europe, Africa, and the Middle East
➡️ The China-Pakistan Economic Corridor links western China to the Arabian Sea via new highways and ports, giving China direct access to maritime routes
↔️ Fostering economic integration
➡️ Through investments in infrastructure and the establishment of special economic zones, China is promoting regional economic integration among BRI countries
➡️ Central Asia and Africa emerged as top destinations for Chinese investment in 2025, receiving $25 billion and 30.5 billion, respectively
📈 Prospering engagements
➡️ The BRI’s total engagement soared to $124 billion in the first half of 2025, the highest level ever recorded for a six-month period
➡️ Since its inception in 2013, cumulative BRI engagement has now surpassed $1.3 trillion, encompassing infrastructure, trade, and investment partnerships with over 150 countries, according to a new BRI report.
Source: geopolitics prime
