China's central bank has instructed major lenders to increase the share of yuan used in facilitating cross-border trade, reinforcing Beijing's ongoing efforts to internationalize its currency. This move comes amid a global economic environment marked by rising geopolitical uncertainty and the impact of US tariffs. The policy aims to boost the yuan's role in international financial transactions by leveraging lending mechanisms, although reliance on debt to promote the currency's uptake has limitations. Analysts note that China's strategy reflects a broader attempt to reshape economic and financial linkages selectively in response to the fragmenting global economy.