U.S. "Time" magazine published an article on July 2, the original question: are gradually make the yuan as dollars competitors Shenzhen is China's economic take-off of the starting from the beginning of 1980, Deng Xiaoping created the Shenzhen Special Economic Zone, which is China's first the introduction of Western liberal economic system areas. Shenzhen had locked the regional economy is finally connected with the outside world has become a one time soon, China's cheap labor advantage immediately began to attract a large influx of foreign investment to Shenzhen. Since then, the world economy due to China opened a new chapter in Asian countries once dominated by agriculture has become an instant the world's manufacturing workshop; in the economy, now is the main competitor of the United States. This is only used for 30 years. Recently, Beijing has once again Shenzhen Special Economic Zone selected as the starting ground for free money works. Last Friday, Chinese policy-makers, Shenzhen in some areas in the future will be used for the test area, the region called "before the sea-Shenzhen-Hong Kong modern service industry cooperation zone" international currency "convertible. Although now on the cooperation area specific plans and few, but one of the main services will include: RMB lending to help Hong Kong and mainland enterprises. China's purpose in doing so is clear: Beijing will be the gradual liberalization of the yuan, so that the Chinese currency in circulation in the international financial markets. China Development and Reform Commission Zhang Xiaoqiang, deputy director, said: "The national policy is to gradually open the capital account, which will help to realize the full convertibility of the yuan and other international currencies. Before the sea, the first test of the modern service industry as the country's financial district, the yuan free of the operation of a pioneer. " Qianhai cooperation zone running smoothly, China will achieve over the years its economic take-off is another important aspect of the transition from a manufacturing-oriented economy "to" economies based on manufacturing and financial sectors . " Over the years, China's rapid economic development, the role of the yuan in the international market has also been widely recognized. Between China and its trading partners in the past three years, currency in circulation are basically yuan; as early as 2008, international trade, the RMB settlement share is almost zero, while in 2011, the international trade market. are denominated in Renminbi share has risen to 8%. Yuan in the international market on the reason why usage has increased, mainly because Beijing has been in the "currency exchange" to support the circulation of RMB in the international market. In June this year, China is only through the currency exchange trade with Brazil reached $ 30 billion. Now some Chinese companies have allowed Hong Kong banks to use the yuan for international trade settlement. In other words, banks in Hong Kong has become the major regions of the RMB exchange. In addition, in Hong Kong bonds are denominated in RMB settlement, such as "dim sum bonds (dim sum bonds)" is one of them. As China's economic growth remain strong, the development of the circulation of the RMB has been overwhelming. Deutsche Bank chief China economist Jun Ma said: "Obviously, the central bank of the world, more and more countries realize that the U.S. dollar as the international reserve currency is declining, while the yuan is likely to be a strong competitor of the U.S. dollar. " Although the renminbi is now circulating in the international market soon, but the moment there are still a few limitations to making the yuan can not compete with the dollar or the euro. First, the RMB can not be fully in international financial transactions at any time be converted into other currencies, the yuan outside of China liquidity is very limited. In addition, because foreign investors are restricted to buy Chinese stocks and assets, even if they have the yuan, foreign investors can not take full advantage of the funds at hand. If China hopes to further the yuan to become a major international currency in circulation, we must separate the RMB market of Beijing has become more transparent, and the price of RMB-denominated assets also must become market-oriented and transparent. Mr. Ma Jun said, "If the Chinese capital account is not open, its internationalization of the RMB can only reach 10% of the benefits, if capital controls are not adequately removed, this will become a bottleneck in the development of internationalization of the RMB in the next few years. That is why the Shenzhen Qianhai currency test area is so important, through the freedom of currency exchange between the Chinese mainland and Hong Kong, Beijing is gradually unlock the shackles of capital controls. History has proven that Shenzhen pilot area results not only for itself in Shenzhen, the Shenzhen Special Economic Zone in the original 1980 economic developments eventually extended to the major small and medium-sized cities in China. The test area of ??the sea before free currency is likely to reproduce the economic success of the Shenzhen Special Economic Zone, if the SAR is running smoothly, the yuan liberalization and, ultimately, to achieve complete and other international currency convertibility. Yuan the international flow of currency, the dollar as international reserve currency status will be a huge challenge, of course, at this stage are still far from this moment. In order to help the yuan as soon as possible the real line with international standards, Mr. Ma Jun lists 18 important policy, which include: fully open China's capital market to foreign investors, promote the circulation of RMB commodities, increasing the monetary exchange rate flexibility and so on. However, there is still reason to believe that these policies will not immediately be put in place. More precise, short-term, these policies may simply not have happened, after all, Chinese policy makers fearful of premature and excessive liberalization of the renminbi would disrupt the pace of China's economic development, the results give a negative economic impact. Beijing has still believe that capital controls is to ensure that the country's economic well-functioning weapon, which will prevent the "2008 by the United States after the subprime mortgage crisis effects to bring greater impact" on China's economy.
In addition, many large-scale export enterprises and state-owned banks do not agree to accelerate the pace of RMB liberalization; In addition, if the yuan final and other international currency convertibility, China must be the domestic financial system reform, the need for reform will interest rate restrictions to be relaxed, but also make the Chinese banking sector become more competitive.
RMB liberalization road is still long, but the benefits of the experimental zone of Shenzhen before the sea to the global economy should not be underestimated. In 1980, the Shenzhen Special Economic Zone, China's economic take-off for decades, before the sea trial area is likely to change the direction of the global financial and currency markets in the future. Created by China's economic miracle tells us that the last sentence, "may" should be changed to "must" become more precise.



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