China's use of the renminbi in international transactions has reached record highs this year. In July 2024, 53% of China's inbound and outbound transactions were conducted using the Chinese currency. This surge is attributed to China's closer ties with Russia, which supports Beijing's efforts to internationalize the renminbi and reduce its dependence on the US dollar. China is also working on pricing commodities in local currency. Despite this progress, the renminbi's growth is constrained by China's capital controls and the strong network effects favoring the US dollar.