 ▲ China, Digital Yuan, CBDC/ChatGPT-generated image |
China is signaling a major shift in global cryptocurrency capital flows as it lowers its economic growth target through the National People’s Congress (NPC) while declaring its commitment to stabilizing the yuan and strengthening the Real-World Asset (RWA) market.
In an interview with cryptocurrency-focused media outlet Bitcoin Magazine on March 4 (local time), Mark Yusko, hedge fund manager at Morgan Creek Capital, analyzed that China’s strategic shift will have a significant impact on digital asset markets, including Bitcoin (BTC). Yusko explained that China is moving away from a military-centered naval competition toward technological dominance centered on artificial intelligence and semiconductor chips, a trend that is reshaping the paradigm of the digital asset ecosystem. The Chinese government has set its 2026 economic growth target at around 4.5% to 5%, signaling a focus on qualitative growth.
At this year’s NPC, China strongly expressed its determination to maintain the stability of the yuan, a move interpreted as an effort to control capital outflow pressures that previously fueled demand for Bitcoin and stablecoins. In his government work report, Premier Li Qiang emphasized building a modern industrial system and achieving greater self-reliance in science and technology, announcing plans to raise research and development spending to more than 3.2% of GDP. This policy direction appears designed to guide speculative capital that once flowed into crypto markets toward the institutionalized tokenization market for real-world assets.
Yusko assessed that China is attempting to transform the yuan into a fully convertible currency linked to gold, a move that could pose a substantial challenge to the dominance of the U.S. dollar. “China is leading global trade and targeting the petrodollar system while strengthening its dominance in the digital economy and artificial intelligence sectors,” Yusko said. The Chinese government is also consolidating the institutional foundation for digital assets by building an integrated national data market and establishing preventive systems against AI-related security risks.
At the congress marking the launch of the 15th Five-Year Plan (2026–2030), China set a goal of increasing the added value of core digital economy industries to 12.5% of GDP. Leveraging its $20 trillion economy, China contributes approximately 30% of global growth while redefining virtual asset technology as a tool for real-economy innovation. Industry experts analyze that these structural changes in China will become a key variable reshaping global capital flows over the next few years.
China is responding to global economic uncertainty by shifting its growth model from investment-led expansion to one driven by household consumption and high value-added industries. The stabilization of the yuan and the revitalization of the real-world asset market indicate that the nature of Chinese liquidity within the crypto market is shifting from speculation to strategic investment. Investors are recalibrating the correlation between Bitcoin and the yuan within the new digital economic landscape designed by China and formulating long-term response strategies.
Disclaimer: This article is for investment reference only and we are not responsible for any investment losses resulting from reliance on it. The content should be interpreted solely for informational purposes.