Xi Jinping calls for China’s renminbi to attain global reserve currency status

02/02/2026

Sources:  South China Morning Post and Financial Time

When Xi Jinping speaks about the future of China’s currency, the message reaches far beyond Beijing’s financial district. His recent call for the renminbi (RMB) to become a stronger global reserve currency signals more than a monetary ambition. It reflects China’s desire to reshape how international trade, including maritime trade, is priced, settled, and financed.

For the maritime industry, currency is not an abstract concept. Every voyage involves fuel purchases, port fees, shipbuilding contracts, insurance policies, and charter hire payments. Most of these today are denominated in US dollars. A future where the renminbi plays a larger role could slowly change the language of shipping contracts, port billing systems, and trade finance. Like changing the tide beneath a ship, it may not feel dramatic at first, but over time it can alter routes, risks, and strategies.

Why This Topic Matters for Maritime Operations

Maritime transport carries over 80% of world trade by volume, according to UNCTAD. Currency choice directly affects freight rates, bunker fuel pricing, port tariffs, and the cost of financing vessels. If the renminbi gains reserve currency status, shipowners, ports, and charterers trading with China may increasingly settle contracts in RMB rather than US dollars. For shipping companies operating on Asia–Europe and Asia–Africa routes, this could reduce exchange rate risk when dealing with Chinese exporters, shipyards, or cargo owners. At the same time, it introduces new operational challenges, such as managing RMB liquidity, hedging RMB exposure, and adapting accounting systems. In simple terms, currency policy decisions in Beijing may influence daily operational decisions on the bridge, in the engine room, and in the company finance office.

Key Developments, Principles, and Applications

China’s Strategic Push for a “Powerful Currency”

China’s leadership has described its goal as building a “powerful currency” that matches its position as a leading trading nation. This ambition rests on three pillars: wider use of the renminbi in international trade, deeper financial markets in China, and greater confidence among foreign investors.

In maritime trade, this strategy is already visible. Chinese shipping companies, including COSCO Shipping, increasingly offer RMB-denominated freight contracts on routes linked to the Belt and Road Initiative. Ports in Southeast Asia and Africa that handle large volumes of Chinese cargo now accept RMB payments for terminal services. These steps are small individually, but together they form a network of RMB usage that slowly normalises the currency in everyday shipping transactions.

An analogy can help explain this process. A reserve currency is like a harbour that ships trust in bad weather. The US dollar became dominant because it offered stability, deep markets, and predictable rules. China is now trying to build its own safe harbour for the renminbi by expanding its financial infrastructure and trade links.

De-Dollarisation and Shipping Finance

The push for a stronger renminbi also aligns with a global trend known as “de-dollarisation,” where countries seek to reduce dependence on the US dollar. For shipping, this trend shows up in alternative payment systems, bilateral trade agreements, and regional settlement mechanisms.

For example, China and several trading partners now settle a portion of energy and bulk commodity trade in RMB. Since many of these commodities are transported by sea, the currency shift directly affects chartering markets. A tanker charter carrying crude oil to China may now be paid in RMB rather than USD, changing how shipowners manage cash flow and foreign exchange risk.

Shipping finance is another area of impact. Chinese banks increasingly offer loans denominated in RMB for shipbuilding and fleet expansion. Classification societies such as Lloyd’s Register and DNV already work with Chinese financial institutions to assess vessel safety and compliance for these loans. If RMB lending grows, shipowners may find it easier to finance vessels tied to Chinese trade, but harder to exit if their revenue is still in dollars or euros.

Implications for Ports and Logistics Chains

Ports are the meeting point between ships and national economies. A rise in RMB usage would affect how ports bill for services such as pilotage, towage, berthage, and cargo handling. Major Chinese ports like Shanghai and Ningbo-Zhoushan already process invoices in RMB for foreign operators. Over time, foreign ports that handle large Chinese volumes may also need to adapt.

From an operational view, this is not just a financial change. Port community systems, customs clearance platforms, and maritime single windows must handle RMB transactions securely and transparently. Organisations such as the International Maritime Organization promote digitalisation and standardisation to improve efficiency and safety. Currency integration becomes part of this digital transition, similar to integrating new electronic documentation systems.

The logistics chain beyond the port is also affected. Freight forwarders, insurers, and P&I clubs may issue policies and invoices in RMB for China-related shipments. This creates a more integrated financial ecosystem around Chinese trade routes, making the RMB a practical working currency rather than only a strategic ambition.

Trade, Geopolitics, and Maritime Security

Currency policy does not exist in isolation from geopolitics. Control over payment systems and reserves can influence trade relationships and even maritime security. When shipping companies face sanctions or payment restrictions, currency alternatives become operational lifelines.

China’s development of cross-border payment systems and its promotion of RMB settlements can be seen as an effort to reduce vulnerability to foreign financial controls. For maritime operators trading with Chinese partners, this may offer more predictable settlement channels, especially in politically sensitive regions.

At the same time, regulatory compliance remains critical. Flag states and port states, supported by bodies such as International Chamber of Shipping, emphasise transparency and adherence to international financial rules. Any currency transition must align with anti-money laundering standards and maritime insurance requirements, ensuring that financial innovation does not weaken safety or security oversight.

Challenges and Practical Solutions

The main challenge for maritime operators is managing currency risk during a transition period where both the US dollar and the renminbi coexist as key trade currencies. Exchange rate volatility can affect voyage profitability, especially for spot market operators who fix charters at short notice.

Another challenge is liquidity. While the renminbi is increasingly traded globally, it does not yet match the depth of US dollar markets. This means that large, urgent transactions, such as emergency dry-docking payments or bunker fuel purchases, may still rely on dollars. Companies must therefore maintain multi-currency accounts and sophisticated treasury management systems.

Practical solutions focus on gradual adaptation rather than sudden change. Shipping companies can start by offering dual-currency contracts for China-related voyages, allowing charterers to choose between USD and RMB. Ports can upgrade billing systems to handle RMB alongside traditional currencies. Training for maritime finance officers becomes essential, so they understand RMB hedging instruments and regulatory requirements.

In this sense, the industry behaves like a ship adjusting course slowly to avoid rough seas. Abrupt shifts would increase risk, while controlled navigation allows operators to test new systems without losing stability.

Case Studies and Real-World Applications

One visible example comes from bulk shipping between Australia and China. Iron ore shipments, which form a backbone of dry bulk trade, have seen experimental RMB settlement arrangements. While most contracts still use US dollars, several cargo owners and shipowners now test RMB pricing to reduce currency mismatch between Chinese buyers and foreign sellers.

Another case involves shipbuilding. Many vessels are built in Chinese yards and financed by Chinese banks. Contracts are increasingly denominated in RMB, especially for domestic owners or regional operators. Classification societies such as American Bureau of Shipping and Bureau Veritas support these projects by providing technical assurance, showing how financial change and technical compliance move together.

Port operations offer a third example. In several African ports developed with Chinese investment, port fees and equipment leases are settled partly in RMB. This reduces conversion costs for Chinese operators and strengthens RMB circulation in maritime hubs outside Asia.

These cases demonstrate that RMB internationalisation is not theoretical. It is already present in everyday maritime transactions, even if it remains secondary to the dollar for now.

FAQ Section

1. What does it mean for a currency to be a global reserve currency?
A global reserve currency is widely held by central banks and used for international trade and finance. It must be stable, trusted, and easy to exchange.

2. Why does China want the renminbi to become a reserve currency?
China seeks to reduce reliance on the US dollar, increase financial independence, and match its trade power with monetary influence.

3. How does this affect shipping companies?
Shipping companies trading with China may increasingly receive or make payments in RMB, affecting contracts, accounting, and currency risk management.

4. Will the US dollar disappear from maritime trade?
No. The dollar is likely to remain dominant for many years. The change is expected to be gradual, leading to a multi-currency system.

5. Are ports already using the renminbi?
Yes. Major Chinese ports and some foreign ports handling Chinese trade already accept RMB payments for services.

6. Does this impact maritime insurance?
Yes. Insurance premiums and claims linked to Chinese trade may increasingly be settled in RMB, requiring insurers to manage RMB exposure.

7. What skills will maritime professionals need in this environment?
Besides technical and navigational skills, professionals will need basic knowledge of foreign exchange, trade finance, and multi-currency operations.

Future Outlook and Maritime Trends

Xi Jinping’s call for the renminbi to gain global reserve currency status reflects China’s ambition to reshape the financial side of global trade. For the maritime sector, this ambition translates into practical changes in contracts, port payments, ship finance, and risk management. The transformation will not happen overnight. Like a long voyage, it will pass through calm waters and storms, shaped by market confidence and geopolitical conditions. Yet the direction is clear: maritime trade with China will increasingly involve the renminbi, and operators who prepare early will navigate this transition more smoothly. For maritime professionals, understanding currency trends becomes as important as understanding tides and traffic separation schemes. The sea may remain the same, but the financial compass is slowly shifting.

Looking ahead, the renminbi’s path toward reserve currency status will depend on trust, transparency, and economic stability. For the maritime sector, the most likely future is a multi-currency environment where USD, EUR, and RMB coexist. Digitalisation may accelerate this trend. With the growth of electronic bills of lading and blockchain-based trade finance platforms, currency choice becomes embedded in digital workflows. A shipowner fixing a charter may soon select settlement currency as easily as choosing a loading port. Environmental policies also intersect with currency trends. Green shipping corridors and carbon pricing schemes require complex financial reporting. If China links green finance incentives to RMB settlements, shipping companies may find practical reasons to adopt the currency when trading on Chinese routes.

In educational terms, maritime professionals will need broader financial literacy. Nautical science and marine engineering remain core skills, but understanding global currency systems becomes part of operational competence. Training institutions and professional bodies increasingly recognise this, aligning economic awareness with technical expertise.

References

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