Trump-Xi truce won’t save the dollar from the yuan

As global investors grow wary of Donald Trump’s dollar, they’re increasingly taking the Chinese yuan out for a ride.

Data from China’s State Administration of Foreign Exchange shows that fixed-income assets held by banks outside the country more than doubled over the past decade, jumping to $1.5 trillion, with yuan-denominated assets now at US$484 billion (a quadrupling in just the last five years. That includes $360 billion in loans and deposits, up from just $110 billion in 2020.