MNI BRIEF: China To Push Yuan Use In Industrial Relocation

China should prioritize the use of the yuan as its industries relocate to other countries and play an active role in adopting new global rules, an official from the People's Bank of China told the Caijing Annual Conference 2021 Wednesday.

The ongoing pandemic has weighed on global supply chains, challenged World Trade Organisation trading rules and could even threaten the U.S. dollar's position in the international currency system, said said Zhou Chengjun, head of the PBOc's finance research institute. The new multilateral groupings -- including RCEP, CPTPP, USMCA -- are replacing WTO rules which are quite different from newer ones, said Zhou.

Addressing global trade in goods, he said the use of the euro has surpassed the dollar globally, said Zhou, noting that 9 cities in the Guangdong-Hong Kong-Macao Greater Bay Area, more than 52% of all settlement of outbound economic transactions use the yuan. China's financial sector will support companies to make use of global resources and continue pushing a high-level of opening up to help production.