KUNMING: The cumulative amount of cross-border renminbi settlements from various companies in southwest China’s Yunnan Province reached about 69.6 billion yuan ($10.9 billion) in 2021, according to a local branch of the country’s central bank.
The figure marked a 5.1 percent year-on-year increase, according to the People’s Bank of China’s central Kunming sub-branch in Kunming, the provincial capital.
Of the total, cross-border renminbi settlements on current accounts recorded 40.3 billion yuan, down 17 percent year-on-year.
This was mainly due to the Covid-19 pandemic which led to a drop in the volume of trade settlements between Yunnan and Vietnam, Myanmar and Thailand.
Capital account settlements reached 29.3 billion yuan, up 65.3 percent year on year, driven by the substantial increase in direct investment and the settlement of cross-border business financing.
Yunnan began piloting cross-border renminbi settlements in 2010. Since then, the network has covered 16 cities and prefectures and 21 border checkpoints, radiating out to South and Southeast Asia.
By 2021, Yunnan’s accumulated renminbi settlement business with 106 countries and regions around the world had reached 658 billion yuan.
Almost all businesses in Chinese regions have grown with government assistance ranging from near-zero interest loans to access to domestic and overseas markets.
The rapid growth is in preparation for the global integration brought about by the regional development programs initiated by different provinces of China.