Nearly all countries have a trade deficit with China and so paying with Yuan and receiving Yuan makes sense as they are not ending up with a pile of Yuan but simply saving the cost of conversion to other currencies such as USD or Euro.

China is already rolling out its digital trade payments systems like CIPS and mBridge which are considerably faster and cheaper to use than the SWIFT system.

I doubt they will force other nations to denominate trade with China in Yuan but rather that most nations will choose to as the ability of the US force them to use USD declines.

Most Bitcoiners see BTC as competing with the USD winner takes all style - I see the Chinese CBDC Yuan and other digital trade payment protocols (including stablecoins) as the greater medium-longer term competition facing Bitcoin.