Catenaa, Friday, June 13, 2025- China and the European Central Bank have opened a new chapter in financial coordination, with Chinese Premier Li Qiang and ECB President Christine Lagarde meeting in Beijing on June 12 to mark the 50th anniversary of China-EU diplomatic relations and signal a broader push for yuan internationalization.
Li called for stronger institutional engagement with the ECB on global monetary reform and multilateral cooperation. Lagarde supported the move, highlighting the importance of sustained EU-China dialogue amid rising trade tensions and geopolitical uncertainty.
While the meeting did not result in immediate policy changes, both sides framed it as a strategic effort to stabilize global capital flows and encourage local currency settlements.
Li reiterated China’s intent to expand access to its financial markets and reduce dependency on the US dollar, while Lagarde praised China’s innovation-driven economic model and welcomed deeper cooperation on regulatory and technical levels.
The discussions also explored offshore digital currency initiatives, including yuan-backed stablecoins in Hong Kong to facilitate cross-border trade. These efforts align with China’s broader strategy to strengthen the yuan’s global footprint without undermining domestic capital controls.
Lagarde warned against trade wars, urging instead a collaborative approach to maintain open markets. The ECB and People’s Bank of China recently launched a central bank governor dialogue mechanism, underlining the deepening institutional ties.
China’s push for greater yuan usage and the ECB’s openness to monetary coordination mark a potential pivot away from dollar-dominant frameworks toward a more balanced global system.
