Beijing bets on RMB ascent as dollar dominance endures
China aims to challenge the dollar’s supremacy, but turning that ambition into reality would require major structural changes—relaxing capital controls and building the financial infrastructure—steps Beijing has begun through cross-border banking and RMB-use in trade. Yet the dollar’s global role remains powerful due to vast U.S. Treasury issuance, market depth, and established payment networks, and limited high-quality assets outside the U.S. means the renminbi’s share in reserves is likely to rise only modestly, restrained by China’s capital controls and weaker institutions.