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The Role of London and Frankfurt in Supporting the Internationalization of the Chinese Renminbi

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The Role of London and Frankfurt in Supporting the Internationalization of the Chinese Renminbi. / Knoerich, Jan Michael; Pacheco Pardo, Ramon; Li, Yuanfang.

In: New Political Economy, 21.05.2018.

Research output: Contribution to journalArticle

Harvard

Knoerich, JM, Pacheco Pardo, R & Li, Y 2018, 'The Role of London and Frankfurt in Supporting the Internationalization of the Chinese Renminbi', New Political Economy. https://doi.org/10.1080/13563467.2018.1472561

APA

Knoerich, J. M., Pacheco Pardo, R., & Li, Y. (2018). The Role of London and Frankfurt in Supporting the Internationalization of the Chinese Renminbi. New Political Economy. https://doi.org/10.1080/13563467.2018.1472561

Vancouver

Knoerich JM, Pacheco Pardo R, Li Y. The Role of London and Frankfurt in Supporting the Internationalization of the Chinese Renminbi. New Political Economy. 2018 May 21. https://doi.org/10.1080/13563467.2018.1472561

Author

Knoerich, Jan Michael ; Pacheco Pardo, Ramon ; Li, Yuanfang. / The Role of London and Frankfurt in Supporting the Internationalization of the Chinese Renminbi. In: New Political Economy. 2018.

Bibtex Download

@article{3747bb86902041cd8de3b4d15dfef9a8,
title = "The Role of London and Frankfurt in Supporting the Internationalization of the Chinese Renminbi",
abstract = "Why do foreign countries support the internationalization of the renminbi (RMB) by establishing offshore RMB centres? The Chinese government has openly stated that internationalization of the country{\textquoteright}s currency is one of its top priorities. International use of the RMB has already significantly increased in recent years. Yet, existing literature has almost exclusively focused on the structure of the Chinese economy and China{\textquoteright}s domestic politics to explain RMB internationalization. With this article, we seek to fill a gap in the literature by analysing the reasons why foreign countries support RMB internationalization. Using the cases of Germany and the UK, we show that a combination of economic and political factors, partly in response to inducements from Beijing, best explain why foreign countries support Chinese efforts to internationalize the RMB. Some of these factors are similar to both countries, but there are also differences regarding the reasons why they support this key Chinese goal. We use the case of the establishment of offshore RMB centres to conduct our analysis, given the clear political nature of foreign countries allowing China to open them in their own territory. We thus also show that the Chinese currency is starting to display the characteristics of negotiated currencies.",
author = "Knoerich, {Jan Michael} and {Pacheco Pardo}, Ramon and Yuanfang Li",
year = "2018",
month = may,
day = "21",
doi = "10.1080/13563467.2018.1472561",
language = "English",
journal = "New Political Economy",
issn = "1356-3467",
publisher = "Routledge",

}

RIS (suitable for import to EndNote) Download

TY - JOUR

T1 - The Role of London and Frankfurt in Supporting the Internationalization of the Chinese Renminbi

AU - Knoerich, Jan Michael

AU - Pacheco Pardo, Ramon

AU - Li, Yuanfang

PY - 2018/5/21

Y1 - 2018/5/21

N2 - Why do foreign countries support the internationalization of the renminbi (RMB) by establishing offshore RMB centres? The Chinese government has openly stated that internationalization of the country’s currency is one of its top priorities. International use of the RMB has already significantly increased in recent years. Yet, existing literature has almost exclusively focused on the structure of the Chinese economy and China’s domestic politics to explain RMB internationalization. With this article, we seek to fill a gap in the literature by analysing the reasons why foreign countries support RMB internationalization. Using the cases of Germany and the UK, we show that a combination of economic and political factors, partly in response to inducements from Beijing, best explain why foreign countries support Chinese efforts to internationalize the RMB. Some of these factors are similar to both countries, but there are also differences regarding the reasons why they support this key Chinese goal. We use the case of the establishment of offshore RMB centres to conduct our analysis, given the clear political nature of foreign countries allowing China to open them in their own territory. We thus also show that the Chinese currency is starting to display the characteristics of negotiated currencies.

AB - Why do foreign countries support the internationalization of the renminbi (RMB) by establishing offshore RMB centres? The Chinese government has openly stated that internationalization of the country’s currency is one of its top priorities. International use of the RMB has already significantly increased in recent years. Yet, existing literature has almost exclusively focused on the structure of the Chinese economy and China’s domestic politics to explain RMB internationalization. With this article, we seek to fill a gap in the literature by analysing the reasons why foreign countries support RMB internationalization. Using the cases of Germany and the UK, we show that a combination of economic and political factors, partly in response to inducements from Beijing, best explain why foreign countries support Chinese efforts to internationalize the RMB. Some of these factors are similar to both countries, but there are also differences regarding the reasons why they support this key Chinese goal. We use the case of the establishment of offshore RMB centres to conduct our analysis, given the clear political nature of foreign countries allowing China to open them in their own territory. We thus also show that the Chinese currency is starting to display the characteristics of negotiated currencies.

UR - http://www.scopus.com/inward/record.url?scp=85047187579&partnerID=8YFLogxK

U2 - 10.1080/13563467.2018.1472561

DO - 10.1080/13563467.2018.1472561

M3 - Article

JO - New Political Economy

JF - New Political Economy

SN - 1356-3467

ER -

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