Foreign
RMB internationalization inevitable trend as Chinese economy continues to grow

The internationalization index of the Chinese currency renminbi (RMB), or the yuan, hit a 5-1/2-year high, according to a recent Reuters report.
Citibank predicted that the RMB is likely to overtake the Japanese yen and British pound to become the third most-recognized global settlement currency by the year 2030.
In 2009, the People’s Bank of China (PBOC), China’s central bank, launched a pilot project to use the RMB in the settlement of cross-border trade, ushering in the internationalization of the currency.
Over more than a decade, the RMB has emerged as an important currency in cross-border trade, financial transactions, and official foreign exchange reserves, becoming increasingly market-oriented and internationally recognized. Meanwhile, the currency has also played a crucial role in facilitating trade and investment, promoting innovative development of the financial sector, as well as serving the real economy and other areas.
The RMB Internationalization Index (RII) had risen from 0.02 in the first quarter of 2010 to 5.02 in the fourth quarter of 2020, growing by more than 250 times in ten years, according to figures released by the International Monetary Institute (IMI) of Renmin University of China.
The RII, though still lower than the internationalization indexes of the U.S. dollar (51.27) and the euro (26.17), has surpassed those of the yen (4.91) and the pound (4.15) and ranked third among major currencies for three consecutive quarters.
It’s quite obvious that in recent years, although China’s capital account hasn’t been fully opened, the overall internationalization level of the RMB has been elevated constantly. The country has preliminarily blazed a path of currency internationalization with Chinese characteristics, which can be attributed to its achievements in the following aspects.
First, China has maintained the long-term “crisis-free growth” of its real economy, cornerstone of currency internationalization, providing a solid foundation for the internationalization of the RMB.
As the COVID-19 pandemic has plunged global economy into deep recession and made the external environment increasingly severe, China’s becoming the first country among the world’s major economies to realize positive economic growth has further increased global investors’ confidence in the RMB and RMB financial assets.
Second, China has always adhered to high-level opening-up, enabling the RMB to gradually perform more functions around the globe.
The size and share of the RMB in cross-border trade settlement have seen growth while maintaining stability. As to the use of the RMB in financial transactions, outbound direct investment (ODI) and foreign direct investment (FDI) using the RMB have grown steadily; the construction of the offshore RMB bond market has been advanced; the capital market has been opened up at a faster pace; the financial derivative market has made breakthroughs; and RMB financial assets have won favor with global investors.
With the entry of the RMB into the IMF’s Special Drawing Rights (SDR) basket, the amount of the RMB in global foreign exchange reserves increased from $90.78 billion in 2016 to $269.49 billion in 2020, recording growth in ten straight quarters. So far, the currency has been included into the foreign exchange reserves of 75 countries and regions.
Third, China has constantly improved the international cooperation and infrastructure for the use of the RMB. Bilateral currency swap agreements and clearing banks for RMB business have been continuously expanded to facilitate the use of the RMB overseas.
Free trade zones across the country have expanded pilot zones for cross-border RMB business, and the Guangdong-Hong Kong-Macao Greater Bay Area has enhanced connectivity among financial markets in an orderly manner, gradually promoting the cross-border use of the RMB.
Besides, the country has made significant achievements in the construction of the Cross-border Interbank Payment System (CIPS), which makes cross-border use of the RMB more convenient.
While the global economy is still faced with uncertainties, the RMB is showing strong stability as a result of the resilience of the Chinese economy, the stable value of the RMB, and the constantly deepened international cooperation.
China’s economic and social systems have been really resilient in the face of the sudden COVID-19 pandemic and increasingly grim external environment. The country has not only made major strategic achievements in the battle against the virus, but achieved remarkable results in promoting economic and social development amid routine COVID-19 prevention measures.
Despite the impacts of the pandemic, the country has achieved positive growth in its real economy and foreign trade and seen record-high use of foreign investment, creating a good economic environment for the internationalization of the RMB.
The COVID-19 pandemic has caused tremendous turbulence for global financial markets and a drastically rising panic in market players. As central banks of major countries and regions have implemented super-loose monetary policies and carried out unconventional countercyclical operations to mitigate the impacts of the pandemic, China’s monetary policy has been kept within a normal range, and the interest rate and exchange rate of the RMB have remained relatively firm.
Since 2008, the PBOC has signed bilateral currency swap agreements with the central banks or other monetary authorities of over 30 countries and regions, covering major developed economies and emerging economies as well as main offshore RMB markets.
Bilateral currency swap not only helps promote trade and investment and guarantee liquidity in the supply of the RMB, but can increase the RMB’s risk resistance capacity, give a positive signal about the RMB to the world, and firm up overseas investors’ confidence in the RMB.
By Song Ke, Deputy Director of the International Monetary Institute of Renmin University of China
Foreign
Judge blocks Trump from deporting non-citizens using wartime law

A federal judge has temporarily halted the Trump administration’s attempt to deport migrants allegedly linked to the Venezuelan gang Tren de Aragua under a wartime law.
US District Judge James Boasberg issued a restraining order preventing the administration from using the Alien Enemies Act of 1798 to expel undocumented migrants accused of gang ties. The order initially protected five individuals challenging the deportation but was later expanded to all affected noncitizens in US custody.
Boasberg also directed that any planes carrying these migrants be returned to the United States. “Any plane containing these folks that is going to take off or is in the air needs to be returned,” he ruled. The restraining order will remain in effect for 14 days or until further court action.
The Trump administration invoked the Alien Enemies Act, citing Tren de Aragua as a terrorist organization that has “unlawfully infiltrated the United States” and is engaging in hostile actions. However, civil rights groups, including the ACLU, argue that the gang’s activities do not meet the legal definition of an invasion.
The Justice Department has appealed the ruling, while the case continues in court.
Foreign
China’s new chapter in global innovation

By Gu Yekai, Liu Yiqing, People’s Daily
At a smart construction project site managed by China State Construction Engineering Corporation, a quiet technological revolution is underway. Amid cranes and concrete, engineers are deploying advanced artificial intelligence (AI) systems that could fundamentally reshape the construction industry.
Li Fengjian, an AI specialistwith Xianyuan Technology, detailed how the company’s latest intelligent system – built on a large model – adapts to complex construction environments.”Engineering machinery equipped with intelligent agents can adjust its operations automatically in response to weather conditions,” Li explained, adding that a spatiotemporal sensing network further enhances the system, providing real-time tracking of both personnel and materials throughout the construction site.
In February this year, Xianyuan Technology rapidly integrated its self-developed model with DeepSeek-R1, effectively blending a general-purpose framework with industry-specific models. This integration, Li noted, has produced a solution capable of delivering expert-level performance in challenging, dynamic environments. The firm is based in the Shanghai Foundation Model Innovation Center, aburgeoning AI incubator that now hosts over 200 innovative enterprises.
China’s technological transformation extends well beyond the construction sector. Overthe past three decades, the country has evolved from its initial forays into internet connectivity to becoming a key player in global digital innovation.
Here, a steady stream of technological innovations are emerging, from the early days of emails and web browsing to the cutting-edge technologies represented by DeepSeek and the dynamic evolution of social media.
Wu Jianping, an academician at the Chinese Academy of Engineering and headof the Zhongguancun Laboratory, pointed out that while China had introduced only one internet standard before 2005, it now contributes to over 200 worldwide. Such strides illustrate the country’s concerted push toward high-level technological self-reliance – a journey marked by both persistence and determination.
Beyond the digital realm, China is makingsignificant inroads in aerospace, new energy, and other high-tech sectors. It has transitioned from being a follower to standing shoulder-to-shoulder with global leaders, and in some areas, even taking the lead. Wu attributed these achievements to a dynamic ecosystem of policy reforms and talent cultivation that encourages creativity and technical expertise at every level.
Amid intensifying international competition, collaborative research and the integration of new technologies with traditional industries are central to China’s high-quality economic development.
Mei Linhai, a researcher at China’s State Key Laboratory of Cognitive Intelligence, remarked that the age of AI calls for continuous exploration. “In this era, everyone is an innovator. Only by persistently pushing the boundaries can we remain at the forefront of both technological and industrial development,” Mei observed.
In the field of general-purpose AI, Mei emphasized that independent innovation is paramount. He advocates for a self-driven industrial ecosystem that leveragesbreakthrough technologies to boost productivity and unlock new possibilities, Mei said.
Foreign
Chinese democracy in action:a village bench meeting shapes national law

By Wei Zhezhe, Liu Botong, People’s Daily
In a modest corner of Jiangmen, south China’s Guangdong province, residents of Weidong village are experiencing firsthand a form of democracy that starts at the grassroots level and reverberates all the way to Beijing.
Wu Tengxin, a local villager who relies on a scooter for daily mobility after contracting polio, recalls a time when the village’s public spaces were ill-equipped for people with disabilities. Now, thanks to a simple suggestion made during a meeting, his everyday life has changed.
In November 2022, a team from a local legislative outreach office – a branch of China’sNational People’s Congress (NPC) – visited Weidong village and set up a “bench-style meeting.” Residents, including the elderly and those with disabilities, gathered to voice their concerns about inadequate accessibility.
Amid the conversation, Wu offered a straightforward proposal: “I hope rural accessible facilities can be improved to make mobility easier for people with disabilities and the elderly.” His words were relayed verbatim to lawmakers.
The response was swift. On June 28, 2023, at the third session of the 14th NPC Standing Committee, legislators passed a law on building a barrier-free living environment. The law stipulates that improvements”shall align with social and economic development levels, coordinate urban and rural progress, and gradually narrow the gap in infrastructure between urban and rural areas.”
Today, Wu observes that the village’s main roads and public squares have been upgraded with accessibility features that make getting around considerably easier.
This episode illustrates what Chinese officials call “whole-process people’s democracy” – a system where citizen input is woven into every stage of policy development.
Jilie Ziri, head of Abuluoha village in Butuo county, southwest China’s Sichuan province, remarked that for young generations in China, democracy has become a lived experience. “Villagers are the masters of village affairs,” he said, emphasizing how active villager participation has injected new vitality into local governance.
Experts point to consultative democracy as a cornerstone of this process. Tao Kaiyuan, vice chairman of the Central Committee of the China Association for Promoting Democracy and vice president of the Supreme People’s Court, underscores the important role of the Chinese People’s Political Consultative Conference, whose members hail from every stratum of society and bring a wealth of expertise and connections.
Their regular forums, field research, and public consultations have created robust channels for citizens to contribute ideas and forge consensus.”This approach gathers collective wisdom and transforms public voices into policy,” Tao said.
Another crucial manifestation is the effectiveness of China’s political party system. Under the leadership of the Communist Party of China, Chinese democratic parties actively fulfill their duties, offering recommendations that often translate into concrete policy decisions. This integrated approach demonstrates the unique strengths of China’s political system and the advantages of whole-process people’s democracy.
Tao emphasized that whole-process people’s democracyhas evolved into an efficient and dynamic democratic practice – one that not only reflects the essence of socialist democracy but also presents a pioneering model of political civilization, contributing Chinese wisdom and solutions to global governance and democratic development.
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