Enhancing the status of the Renminbi as a pricing currency: From "Made in China" to "Priced in China"

WealthCoffee · 2026-03-12T07:38:35+00:00

The pricing power in international currency trade determines the party responsible for exchange rate risk. Enhancing this right helps reduce the risks faced by economic entities. China has an advantage in intermediate goods pricing, but exports priced in RMB account for only about 10%, not fully leveraging its industrial chain advantages.

WealthCoffee

2026-03-12 07:38:35

Abstract generation in progress

The pricing power in international trade of currencies is a rule-making authority that determines who bears the exchange rate risk in international trade. Enhancing the pricing power in international trade can reduce the exchange rate risk faced by domestic economic entities. As a rule, the currency used for pricing has universality, and its influence can easily spread to global markets. It can also enhance the international influence of a currency as a settlement and reserve currency. In decision-making regarding the choice of international trade pricing currencies, key considerations include intermediate goods pricing, competitor pricing, and transaction costs. As the “world’s producer,” China has a large, comprehensive, and resilient industrial chain, with clear advantages in intermediate goods. However, currently, only about 10% of China’s exports are priced in RMB, and the advantages of its industrial chain have not been fully realized.

Recommend accessing Caixin Database for real-time macroeconomic data, stocks, bonds, company profiles, and financial information.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.