Research On The Effect Of Outward Foreign Direct Investment On The Internationalization Of RMB

In recent years,especially since 2010,along with the rapid economic development in China,the process of internationalization of the renminbi has steadily advanced.According to the currency internationalization experience of the United States,Germany,Japan and other countries,the internationalization of currency must go through three development processes of a country's industry,exports and foreign investment.Today,China is at the crossroads of history.That is to say,the transition from a big exporting country to a strong investment country has become a proper part of the internationalization of the RMB.On the one hand,the internationalization of the RMB has had a positive effect on foreign direct investment.The reason why it can become an international currency is because the country has gradually become more international in economic development and has taken an increasingly important position in the international trade arena.This requires the country to have a strong outward-looking type that is in line with the status of the world economy.Economic,stable currency and open financial markets.The internationalization of the RMB has promoted the development of foreign investment.Chinese enterprises have more cost advantages in financing and purchasing foreign exchange.This is also an important reason for the overseas expansion of HNA,Anbang and Wanda in recent years;of course,since 2017,the regulatory The supervision and restrictions on overseas acquisitions have also become more stringent,which also reflects the predicament that the internationalization of the RMB may face.On the other hand,the increase in foreign investment has also boosted the level of RMB internationalization.The activities of foreign investment have strengthened the multiplier effect of currency conversion and the settlement effect in international settlements by increasing the frequency of exchange of RMB and various currencies and prompting RMB receiving countries to include them in foreign exchange reserves.In international trade,the reliance on the RMB by trading countries has increased,and the shift in the scale of trade caused by it will directly and significantly positively stimulate the internationalization of the RMB.Through the analysis of this paper,we can conclude that foreign direct investment and the degree of internationalization of the RMB interact and influence each other.This article will seek to explore the development of the process of internationalization of the RMB according to different stages of research on foreign investment policies in various stages.Under the interaction of the two,the exploration of China's foreign investment will be based on the successful experiences of countries such as Britain,the US and Japan and what should be improved in the policy.