Research On The Impact Of Outward Foreign Direct Investment On RMB Internationalization In The Context Of The Belt And Road Initiative

Nowadays,with the in-depth advancement of the “The Belt and Road” initiative and the continuous deepening of the open policy,China has accelerated the pace of "going global" for enterprises.And,the foreign direct investment has grown rapidly.China has become a net foreign direct country for four consecutive years.At the same time,the process of RMB internationalization has also accelerated,and "enterprise ’going out’ + RMB capital export" has become a new main line leading the deepening of RMB internationalization.In this paper,it is of great significance to explore the impact of OFDI on the RMB internationalization in conjunction with the "The Belt and Road” initiative.This paper takes the "The Belt and Road” initiative as the background,and focuses on the analysis of the impact of China’s foreign direct investment on RMB internationalization.First of all,this paper sorts out the research results at home and abroad,specifically shows the current history and status of China’s foreign direct investment development.Besides,focuses on analyzing the development characteristics of China’s foreign direct investment in the context of the "The Belt and Road".Secondly,this paper clarifies the impact mechanism of China’s foreign direct investment on the internationalization of RMB,and provides theoretical support for the full text research.Finally,this article uses an empirical test method to compare the impact of China’s foreign direct investment on the RMB internationalization before and after the implementation of the "The Belt and Road” initiative.In the above research,this article summarizes the following results:(a)The scale of China’s OFDI has expanded rapidly and the industrial structure has continued to be optimized.Investment methods have been continuously innovated and the amount of RMB settlement in FDI has grown rapidly.In the context of the "The Belt and Road",China’s foreign direct investment has shown new development characteristics,which are mainly reflected in three aspects: scale contribution,channel innovation and financial support.(b)In recent years,the level of RMB internationalization has steadily improved,the function of RMB international financial transactions has been further strengthened,and the level of RMB internationalization under capital finance has increased significantly.(c)The impact mechanism of foreign direct investment on the RMB internationalization is mainly about two aspects: direct impact and indirect impact(currency stability,trade expansion,financing expansion and expected effects).(d)After the "The Belt and Road” initiative has been fully implemented,the promotion of foreign direct investment on the RMB internationalization has been significant and sustained.In the future,further development of foreign direct investment will become an important factor in promoting the RMB internationalization.Finally,based on the "The Belt and Road” initiative,this paper makes policy suggestions about improving the RMB internationalize through foreign direct investment.