![]() In the 13th Five-Year Plan (2016-2020), a macro-political agenda set forth by the Politburo Standing Committee and adopted by the People’s National Congress, central planning leadership reiterated that the Chinese goal is to “steadily promote RMB internationalization and see RMB capital go global.” To be successful, China should consider opening its capital market and allow capital flows to cross-border financial transactions allow interest rates to be market determined let the currency be fully convertible and ease capital controls and regulations, all the while forging deeper trust so that the renminbi can become a globally accepted currency. But China’s most critical source of power moving forward will be the internationalization of its currency, the renminbi (RMB). ![]() ![]() As noted by Secretary General of NATO Jens Stoltenberg, “The rise of China is fundamentally shifting the global balance of power and heating up the race for economic and technological supremacy.” Thus far, China’s ascension has been delivered through its military modernization and manufacturing might. “A currency of a country which is important in world markets will be a better candidate for an international money than that of a smaller country.” Krugman (1984)Īlthough 2020 will go down as the year of a global pandemic and political and economic disruption, China has continued its journey to re-establish itself as a prosperous superpower.
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