China is intensifying its campaign to reduce reliance on the US dollar, leveraging its leadership role within the Shanghai Cooperation Organization (SCO) to promote alternative financial systems and currencies.
This move is part of a broader strategy to strengthen economic sovereignty and reduce vulnerability to US-led financial sanctions.
China Eyes Faster De-Dollarization With SCO Leadershiphttps://t.co/PNClna5VG5
— John Morgan (@johnmorganFL) June 5, 2025
The SCO, founded in 2001, is a regional intergovernmental organization comprising China, Russia, India, Pakistan, and several Central Asian countries. Over the years, the SCO has evolved from a security-focused bloc into a platform for economic cooperation. In recent meetings, member states have discussed ways to boost trade using local currencies and develop shared financial infrastructure.
China’s push for de-dollarization comes amid rising geopolitical tensions and ongoing trade disputes between the US and China. By reducing dollar dependency, China aims to shield itself and its partners from the impact of US monetary policy and sanctions.
The Bank of China reports a gradual decline in the US dollar’s share of global reserves, while the Chinese yuan’s use in cross-border transactions is increasing. Countries in the Shanghai Cooperation Organization (SCO) are increasingly conducting trade in their currencies, with China and Russia noting that over 80% of their bilateral trade is settled in yuan and rubles. Additionally, China is promoting its digital yuan as an alternative for cross-border payments within the SCO, which is exploring shared payment systems to avoid reliance on the Western-dominated SWIFT network.
China’s de-dollarization efforts, especially through the SCO, could reshape global trade and finance. If successful, these initiatives may encourage other emerging economies to diversify away from the dollar, potentially reducing its dominance in international markets.
Amidst these developments, Cango is undergoing a major strategic transformation. They are divesting their automotive financing operations in China, selling them to Ursalpha Digital Limited for $351.94 million. This transaction will enable Cango to fully dedicate itself to its new strategy: becoming a global leader in Bitcoin mining, with plans to extend its operations into numerous international markets.
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