ABSTRACT

The rise of the renminbi during the past decade is a clear phenomenon. There have been many debates over its internationalization. This chapter investigates the key paths of renminbi’s internationalization strategies, which are quite different from those of the US and the UK. The key difference is that the internationalization of US dollar or sterling was a market-oriented approach, while that of the renminbi is a state-driven approach. In other words, the pace, the timeline, and the scale of renminbi internationalization is determined by the Chinese government, which may be a key source of anxiety among other states and market players. This chapter investigates the Chinese government’s approach to hese state-driven approaches towards the renminbi internationalization. It is clear that, while state-driven approaches may have brought some quick developments, legal institutions and market may be the most important factors in making renminbi a truly global currency.