In recent years, China has increasingly focused on settling oil and gas transactions in yuan. In a latest move that highlights Beijing's yen for promoting more use of its currency in global trade, CNOOC 0883.HK, the national oil company, and France's leading electric utility company, Engie, have begun to follow suit.
1. China is making efforts to settle oil and gas transactions in yuan to promote the use of its currency in global trade.
2. CNOOC 0883.HK, China's national oil company, and Engie, France's leading electric utility company, have begun using the Chinese yuan for settling their natural gas trades.
3. This move is part of China's strategy to gain more dominance in the global market.
4. Both Chinese corporations and the national government view this transition as a critical step towards achieving this strategic goal.
5. The shift towards using the yuan in international trade could potentially have a deep and wide-ranging impact, possibly reshaping the foundations of international commerce.
As of 2020, approximately 12% of China's oil imports were settled in yuan, up from virtually zero in 2018.
PA began using the Chinese yuan for settling their natural gas trades. This urge to establish the yuan as the preferred currency in oil and gas trade originates from China's attempt to assert stronger sway in the global market. Both Chinese corporations and the national government view this transition as a crucial step towards achieving this strategic objective. The implications are broad and influential, potentially shaking the foundations of international trade.