China's Financial Competitiveness Ranking Downgraded by Own Think Tank, Falls Behind Germany

China's ambition to become a global financial powerhouse faces a setback as its own government think tank, the Chinese Academy of Social Sciences (CASS), has downgraded the nation's global financial competitiveness ranking. The report places China at fifth, slipping behind Germany, the United States, Japan, and the United Kingdom.

This rare downward revision by a state-affiliated institution is attributed to significant stock market volatility experienced in 2024 and 2025. The CASS report indicates that this fluctuation caused China's score to fall just short of Germany's, resulting in the demotion.

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China's ranking has declined, mainly due to stock market volatility in 2024 and 2025, causing its ranking to be 0.09 points lower than Germany's.

While the report highlights the US's continued strength, bolstered by the dollar's international standing, it also points to the yuan's growth potential. Senior researcher Liu Dongmin suggested that the yuan's internationalization could see significant expansion when compared to the dollar and euro, despite its current global standing.

The ranking places Canada, South Korea, France, Australia, and Switzerland in sixth through tenth place, respectively. The findings come as China's leader, Xi Jinping, has vowed to elevate the country into a financial superpower.

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The United States' absolute score for global financial competitiveness has risen compared to last year, supported by the international status of the US dollar. The global position of the RMB still lags behind. However, he insisted that compared to the US dollar and the euro, the RMB has greater potential for internationalization growth.