Chinese companies expanding overseas are increasingly using the yuan for financing and payments to build their international operations, boosting the currency’s growing clout in international trade and investment.
He added that most Chinese companies that have business partnerships with Sieyuan “are often each other’s suppliers or customers, giving both sides a strong incentive to settle transactions in yuan”.
Shenzhen-listed Sieyuan Electric, which designs, manufactures and sells power transmission and distribution equipment, has operations in many countries, including the UK, Italy, Saudi Arabia and Kuwait.
In the first six months of the year, the use of the yuan in cross-border payments totalled 35 trillion yuan (US$4.9 trillion), up 14 per cent from a year earlier, according to the People’s Bank of China.
