26/10/2025
China vs the Dollar: The Yuan’s Green Shift
China is shifting away from the US dollar. While the dollar’s value has dropped this year, the yuan has become stronger as China tightens controls on its economy.
Chinese companies have also pledged more than USD 227 billion to build green industries overseas since 2022 — from solar panels to electric vehicles.
By using the yuan instead of the dollar, China hopes to protect its exporters from currency swings, avoid some sanctions, and make it cheaper to fund clean energy projects.
Still, the dollar remains dominant. It makes up nearly 60% of global currency reserves and is used for most international payments.
The question is not just who leads — but whether this economic shift could make climate finance more independent and fairer worldwide.
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