Redbacks for Greenbacks? The renminbi as an international currency

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A look at the debate between Chinese economics experts.

he interactions between the Chinese economy and the rest of the world are now huge, but expectations - and hopes - that Beijing would internationalise its currency as its economy converged with others have been frustrated. Why?

In the latest edition of China Analysis - 'Redbacks for Greenbacks? The renminbi as an international currency' - published by ECFR and Asia Centre, we look at the debate between Chinese economics experts.

Important trends include:

• China's monetary and financial policies are underpinned by geopolitical calculations.
• China has built a tradition of using money and financial institutions as a tool rather than an end in itself, after a century and a half of being on the losing side of currency conflicts. 
• Every year that Beijing keeps capital controls it buys time for China's hypergrowth, outcompeting other emerging economies and leaving the West to grapple with the difficulties of its open economies.
• Chinese economists and geopoliticians hint at the possible disappearance of European economic power, with relish and without apparent regret.

Download the latest edition of China Analysis here

You can also download previous editions of China Analysis on our website.

Contact ECFR on +44 7227 6880 or on press@ecfr.eu

Contact Asia Centre on +33(0)1 75 43 63 20 or on contact@centreasia.org

NOTES: 

1. China Analysis represents the views of its authors, not the collective views of ECFR and its council members or Asia Centre.
2. The European Council on Foreign Relations (ECFR) is the first pan-European think-tank. Launched in October 2007, its objective is to conduct research and promote informed debate across Europe on the development of coherent and effective European values based foreign policy. ecfr.eu
3. Asia Centre, founded in August 2005, conducts research and organises debate on international relations and strategic issues, as well as on the political and economic transformations in the Asia-Pacific; promotes cooperation and second track dialogue with partners in Asia, Europe and the world; publishes timely information and analysis from the region, executive briefs and reports from our research team. Asia Centre is based at Sciences Po (Paris), a leading university for political and social sciences. http://www.centreasia.org/  

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