Opportunities and Challenges of China after CNY Internationalization

Citation

Mi, Yinjia. (2015). Opportunities and challenges of China after CNY Internationalization. (Master’s independent study). Bangkok: Siam University.

Abstract

With China reformation and open more than 30 years, China GDP was keeping high speed growth even if the growth speed of GDP is lower than before from last year. Growth speed of China GDP still keeps middle high speed to grow. With international trade furth er promotion, China became world factory. More and more amount of products were exported to world from China. Therefore, CNY internationalization is inevitable and very significant for China. According the report which was released by IMF last year that CN Y succeeded into basket currencies of IMF and acquired the Special Drawing Rights. It announced that CNY is formally international currency from last year. Face this change, it is opportunities and challenges for China after CNY succeeded internationalizat ion. There are six aspects of opportunities for China which include promotion further global trade, promotion China oversea direct investment, further promotion foreign investment, promotion steady of CNY domestic, more adaption world financial order and b ecoming international investment tool. These opportunities consist of global economy and China economy and development opportunities for world. But it has to notice the challenges after CNY internationalization. It maybe suffer three aspects’ challenges fo r China which are challenge current rule, current policies of CNY and face stronger competition. For rapid development of China economy and improvement international influence, it maybe touch current rule and challenge some countries’ benefit. And whether current policies of CNY are for internationalization? It can not avoid to face stronger competition, especially currency war which instigates by some countries whose benefit were impacted. The objective of this article is to analyze the opportunities and c hallenges which might happen by analysis of various data of economy and index. Combine data and problems to advice relevant measure to solve problems. There are five aspects’ solution for China. These solutions include aspect of policies and regime of CNY, aspects of national strategies and creation new national strategy like combination AIIB and “Belt and Road” and aspect of more establishment CNY central settlements. Come to some conclusions in final. To comprehensive analyze data and information and solu tions, the conclusions are that China economy will keep middle high growth, there is coexistence opportunities and challenges, China has national strategy to support economic and CNY development and CNY will more improve regional influence. In summary, the re are reasons to believe that China can promote CNY comprehensive internationalization and become international currency which is like position of USD by combination various policies and solutions and national strategy. And China economy will never reduce step to develop in the background of CNY internationalization, because CNY internationalized gives China new energy to develop economy and China will be more confidence to face world and world economy.

Keywords: GDP, international trade, CNY internation alization, the Special Drawing Rights, opportunities and challenges.

Opportunities and Challenges of China after CNY Internationalization

International Master in Business Administration (IMBA), Siam University, Bangkok, Thailand