Renminbi internationalization: a strategy with Chinese characteristics

LIU Jianfeng1 PAN Yingli2

(1.Ph.D. candidate at Antai College of Economics & Management, Shanghai Jiao Tong University)
(2.Professor at Antai College of Economics & Management, Shanghai Jiao Tong University)

【Abstract】Renminbi internationalization is a systematic project. What is “high-quality renminbi internationalization”? This paper argues that successful renminbi internationalization is symbolized by the following: firstly, during each step of the internationalization, whether or not exchange rate is dominated by Chinese-funded financial institutions in the onshore market rather than by other international financial institutions in the offshore market; and whether or not the central bank can maintain a low-cost influence on the market exchange rate’s movement; and secondly, whether or not the return rate of the overseas assets denominated by renminbi and held by China exceed the yield of similar assets in the onshore market or keep positive, stable and sustainable at least. The potential targets of renminbi internationalization should mainly be countries with rich resources as well as Southeast Asian and Central Asian countries along the “Belt and Road” route. We can encourage those countries to directly use renminbi for denominating and settlement of commodities such as crude oil and ores, carry out more renminbi-denominated outbound direct investment and financing with higher net yield than that in the domestic market, and help them establish and develop more processing trade industrial parks, where the manufactured products will be sold to other countries including China by renminbi for denominating and settlement; meanwhile, we should speed up cultivation and development of government bonds and quasi- government bonds markets with width and depth, safety, and ample liquidity, which should be opened up to the outside world in an orderly way at right time. To that end, this paper proposes a strategy with Chinese characteristics for renminbi internationalization that adjusts the tempo of the process in accordance with changing situation.

【Keywords】 renminbi internationalization; offshore renminbi industrial park; closed cross-border renminbi trade network;


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(Translated by GENG Qingyou)


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This Article


CN: 11-3799/F

Vol , No. 02, Pages 52-67+5

March 2018


Article Outline


  • 1 Renminbi internationalization is a systematic project
  • 2 Key experience and lessons of renminbi internationalization in the past years
  • 3 Symbol of renminbi internationalization success
  • 4 Comparative advantages of China’s real economy and feasible path of further renminbi internationalization
  • 5 Conclusion
  • Footnote