Internationalization of the RMB, Capital Market Openness and Financial Reforms in China

Joshua Aizenman

Research output: Contribution to journalArticlepeer-review

19 Scopus citations


This paper provides an overview of Chinese financial and trade integration in recent decades, and the challenges facing China in the coming years. China had been a prime example of export-led growth, benefiting from learning by doing, and by adopting foreign know-how, supported by a complex industrial policy. While the resultant growth has been spectacular, it comes with hidden but growing costs and distortions. The Chinese export-led growth path has been challenged by its own success, and the global financial crisis forced China toward rebalancing, which is a work in progress. Reflecting on the internationalization of the CNY, rapid acceleration of the commercial internationalization of the CNY is expected. In contrast, there are no clear-cut reasons to rush with the full CNY financial internationalization: the gains from CNY financial internationalization are overrated.

Original languageEnglish
Pages (from-to)444-460
Number of pages17
JournalPacific Economic Review
Issue number3
StatePublished - 1 Aug 2015
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics


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