China’s Yuan finds new ground in Central Asia

By the Editorial Team · Friday, September 11, 2026

China’s yuan is increasingly used in Central Asia’s infrastructure sector, supported by Beijing’s investments and commercial ties, as highlighted during a Belt and Road Summit panel in Hong Kong. This shift helps companies reduce currency exchange risks and costs, promoting smoother trade amid volatile global markets and advancing the yuan’s international role.

China’s currency, the yuan, is gaining traction in Central Asia, where the Chinese government is a leading investor and commercial partner, industry experts said during a recent investment panel in Hong Kong. The expansion of yuan use in the region is seen as a way to reduce financial risks and lower costs for companies involved in infrastructure development, benefiting from the currency’s growing international presence.

The discussion took place on Thursday at the Belt and Road Summit, where panelists highlighted the advantages of smoother yuan transactions amid fluctuating currency markets, especially when the U.S. dollar is strong. For firms exporting equipment from China to Central Asia, increased access to yuan-denominated financial arrangements could mitigate the risks posed by exchange-rate volatility.

Long Jisheng, chairman and CEO of the Shanghai-based waste management company SUS Environment, emphasized the importance of yuan internationalisation for his business. “Most of our equipment is manufactured in China and shipped over,” he said, noting that the infrastructure sector operates on thin profit margins, which can be completely eroded by currency fluctuations.

Long advocated for the creation of a comprehensive financial ecosystem entirely denominated in yuan, encompassing investment, financing, procurement, and return flows. Such a system would create a closed-loop that shields Chinese enterprises operating abroad from foreign exchange risks.

This financial approach is increasingly relevant in Central Asia's five-country region, which has attracted global attention due to its abundant mineral reserves and emerging markets. According to the Yorktown Institute, over 11,000 Chinese-invested companies operate across Central Asia, including SUS Environment.

The trend toward yuan use in Central Asia reflects a broader pattern of the currency’s internationalisation driven by expanding trade and investment links, particularly where commercial transactions generate natural demand for the renminbi. As China continues to deepen its economic presence in the region, the yuan’s role in cross-border business and infrastructure projects is expected to strengthen further.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.