Former PBOC Adviser Urges China to Boost Imports and Promote Yuan for Trade

Liu Shijin, a former monetary policy adviser to the People’s Bank of China and vice‑chairman of the China Development Research Foundation, urged China to rebalance its external accounts by increasing imports and promoting yuan‑denominated trade and financial products. Liu proposed that China aim to reduce a roughly $1 trillion trade surplus (2024) by bringing in equivalent goods and services and settling more transactions in yuan to boost offshore yuan liquidity and support a stronger international role for the currency. He recommended launching more yuan‑priced financial products offshore — bonds, stocks, funds and derivatives — to raise global yuan usage and improve Chinese residents’ overseas purchasing power. Though Liu’s views are not official policy, they reflect rising international pressure, highlighted by French President Emmanuel Macron’s warning that the EU may impose measures (including tariffs) if China does not address its widening trade imbalance. Beijing has signalled a policy focus on boosting domestic demand and reducing export reliance, with top leaders prioritising improved local consumption for 2026. Current indicators show retail sales fell for the fifth month in October despite export strength that pushed China’s trade surplus past $1 trillion. Liu’s recommendations aim to both rebalance trade and accelerate yuan internationalisation amid geopolitical and currency‑market tensions.