ABSTRACT
This chapter outlines theoretical aspects of the context of renminbi (RMB) internationalization, including ideas of nation building, developmentalism, and national currencies. It considers the issue of China's RMB internationalization program. The drive to internationalize the RMB has occurred in the context of US dollar dominance in the world economy and China's wish for more international financial autonomy. The Chinese Communist Party (CCP) has striven to build a national identity for China which, while trying to assert its great power status, also recalls the national history of greatness and then semi-colonization at the hand of Europeans and Japanese. The development process, including the encouragement of trade, foreign investment, and now financial internationalization, can be seen as a long-term drive to achieve the rehabilitation of China in the world. Most RMB would be held by Chinese investors. The form of investments which may become available in RMB can be categorized as portfolio investments, and foreign direct investments (FDI).
