India Refuses Yuan Over Dollar at SCO Summit 2025: Why New Delhi Opposes China

The recent Shanghai Cooperation Organization (SCO) Summit in 2025 highlighted a significant rift between India and China. India's discontent with China is on full display at the SCO 2025 summit. Prime Minister Narendra Modi decided to skip the summit in Kazakhstan, sending Foreign Minister Subrahmanyam, signaling the growing tensions.

In a move that could redefine the dynamics of international trade, India officially rejected China’s proposal to replace the US dollar with the yuan for trade exchanges. The SCO 2025 summit is showcasing India's growing discontent with China and its advancement of pushing the Chinese yuan for trade settlements and not the U.S. dollar.

SCO Summit 2025: India's Stand Against the Yuan

The recent Shanghai Cooperation Organization (SCO) Summit 2025 witnessed significant tensions arising from India's rejection of China's proposal to substitute the US dollar with the Chinese Yuan. China's proposal to replace the U.S dollar with the yuan in international trade has been met with fierce resistance from India.

According to former Indian Army officer and geopolitical expert Pravin Sawhney, Mr Modi is skipping the SCO Summit in Astana because he is willing to avoid further conflict. This absence further underscores India's firm stance against China's push for the yuan's dominance.

Why India Opposes the Yuan as a Global Reserve Currency

Critics argue that India's refusal is short-sighted, but New Delhi remains firm in its decision. India believes the U.S. dollar's established global infrastructure and stability outweigh the potential benefits of transitioning to the yuan, especially given the current geopolitical climate and concerns about China's economic policies.