Pathways for the Internationalization of the Renminbi under Trump’s Trade Protectionism

This paper explores the profound impact of Trump’s trade protectionist policies on the internationalization process of the renminbi (RMB). It focuses on analyzing the current development status and challenges of the RMB in its three core functions: settlement, pricing, and reserve currency. The study shows that Trump’s tariff policies, supply chain “decoupling” and capital repatriation measures have significantly reduced the frequency of RMB usage in international settlement and pricing while increasing exchange rate volatility, thereby undermining international market confidence and hindering the development of the RMB’s reserve currency function. This paper proposes sustainable pathways for RMB internationalization in response to the challenges posed by Trump’s trade protectionism, including optimizing China’s trade structure, promoting the use of RMB in commodity pricing, advancing the digital RMB, and improving offshore RMB markets.