Global instability is leading to academic debate about dedollarization in China's policy discussions, according to SCMP.
Concerns about the trend of dedollarization are increasing sharply in Chinese academics and policymakers, in the context of Beijing increasingly concerned about the possibility of the US using its currency as a tool to exert political pressure.
This increase is most clearly reflected in the number of studies. According to SCMP's search results on China National Knowledge Infrastructure (CNKI) - one of the largest academic research databases in China - the number of studies on dedollarization in the period 2023-2025 increased more than double compared to the previous 3 years.
The trend of dedollarization is further accelerated as global economic instability increases as US President Donald Trump begins his second term in early 2025.
After launching a global trade war in April 2025, Washington arrested Venezuelan President Nicolas Maduro in early January 2026.
The US also threatened to impose tariffs on 8 European allies after these countries opposed Mr. Trump's intention to buy back, and may even control the resource-rich Greenland territory of Denmark.
Many Chinese scholars have called for accelerating the reduction of dependence on assets valued in USD, especially after the US and its allies froze about 300 billion USD of Russia's foreign exchange reserves in 2022.
Data from CNKI shows that more than half of the total number of studies on dedollarization in the past 3 years were published separately in 2023, a year after the US implemented financial measures against Russia.
In recent years, Beijing has implemented many moves to reduce vulnerability: Reducing holdings of US Treasury bonds, strengthening cooperation with emerging economies, and calling for reform of the international economic and financial governance system.
China is also promoting a strategy to internationalize the yuan, buying gold at record prices and implementing digital currency initiatives.
