{"id":1777,"date":"2013-12-05T15:00:56","date_gmt":"2013-12-05T14:00:56","guid":{"rendered":"http:\/\/www.politicseastasia.com\/staging\/3558\/?p=1777"},"modified":"2013-12-05T15:23:32","modified_gmt":"2013-12-05T14:23:32","slug":"chinese-currency-reforms","status":"publish","type":"post","link":"https:\/\/www.politicseastasia.com\/staging\/3558\/studying\/chinese-currency-reforms\/","title":{"rendered":"Chinese Currency Reforms \u2013 What Will World Trade Look Like with a Freer RMB?"},"content":{"rendered":"<h2>A Discussion with Students at Leiden University and Rotterdam\u2019s School of Management<\/h2>\n<p>For many years, the Chinese government and its central bank <a title=\"Mitt Romney accuses the PRC of currency manipulation\" href=\"http:\/\/www.theguardian.com\/world\/2012\/oct\/23\/mitt-romney-china-currency-manipulator\" target=\"_blank\">have been criticized<\/a>\u00a0for intervening in <a title=\"The New York Times on the 2011 trade disputes between China and the US\" href=\"http:\/\/www.nytimes.com\/2011\/01\/12\/business\/economy\/12leonhardt.html?_r=0\" target=\"_blank\">the exchange rate of the Chinese currency<\/a>, the Renminbi (RMB). Like other developing economies, China\u2019s authorities had long used an undervalued currency to boost exports and secure economic growth as the country moved from a planned to a market economy. In the past, the RMB has been tied to the US dollar and only been allowed to fluctuate within a narrow band, defined by China\u2019s central bank. The resulting exchange rates, and the trade imbalances that have come with it, have been an issue of continuous conflict between the PRC and its major trade partners, most notably the US and the EU.<\/p>\n<p>Following the recent <a title=\"The Economist: &quot;The Party's New Blueprint&quot;\" href=\"http:\/\/www.economist.com\/blogs\/analects\/2013\/11\/reform-china\" target=\"_blank\">Third Plenum of the CCP\u2019s Central Committee<\/a>, the leadership in China has now <a title=\"The Diplomat: &quot;A Roadmap for China's Foreign Exchange Reforms&quot;\" href=\"http:\/\/thediplomat.com\/2013\/11\/a-roadmap-for-chinas-foreign-exchange-reforms\/\" target=\"_blank\">announced that China\u2019s currency system will be overhauled<\/a>, in line with the Plenum\u2019s goals of deeper market reform. As the <a title=\"Wall Street Journal: &quot;China to Gradually Widen Yuan Trading Band&quot;\" href=\"http:\/\/online.wsj.com\/article\/BT-CO-20131119-702876.html?dsk=y\" target=\"_blank\">Wall Street Journal reports<\/a>, the aim is to \u201cwiden the yuan\u2019s daily trading band\u201d and \u201cphase out routine intervention in the foreign exchange market\u201d. Many of these reforms have been underway since roughly 2010, but a new round of measures is believed to further boost trade in what is quickly becoming \u201c<a title=\"Market Watch: &quot;Chinese yuan becomes 2nd most used currency for trade finance&quot;\" href=\"http:\/\/blogs.marketwatch.com\/thetell\/2013\/12\/03\/chinese-yuan-is-2nd-most-used-currency-for-trade-finance-overtaking-euro\/\" target=\"_blank\">a top currency for trade finance globally and even more so in Asia<\/a>\u201d.<\/p>\n<p>In this week\u2019s discussion, we will be taking a look at China\u2019s foreign trade relations and economic growth, and the role that its currency plays in that context. What benefits and drawbacks has China\u2019s past currency policy had for its economy and its international relations, and how might future reforms help the country shift towards a high-income economy? How are <a title=\"Linda Yueh on &quot;The Race for China's Currency&quot;\" href=\"http:\/\/www.bbc.co.uk\/news\/business-24539212\" target=\"_blank\">other economies<\/a>\u00a0affected by the increased importance of the RMB? Will a liberalized Chinese currency provide an opportunity for investors to diversify their portfolio and \u201c<a title=\"The Wall Street Journal: &quot;Do You Need a Chinese Bank Account?&quot;\" href=\"http:\/\/online.wsj.com\/news\/articles\/SB10001424052748704307404576080222812076888\" target=\"_blank\">hedge against the decline of the U.S. economy<\/a>\u201d? Is the RMB possibly even on the way to <a title=\"The Economist: &quot;Climbing greenback mountain&quot;\" href=\"http:\/\/www.economist.com\/node\/21528988\" target=\"_blank\">becoming a new reserve currency<\/a>?<\/p>\n<p>Let us know what you think about these issues.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This online discussion with students from Leiden University and Rotterdam&#8217;s School of Management takes a look at Chinese currency reforms and their affect on China\u2019s foreign trade relations and economic growth. <\/p>\n","protected":false},"author":1,"featured_media":1780,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"image","meta":{"nf_dc_page":"","footnotes":""},"categories":[46],"tags":[43,126,104,125,127,79,124],"class_list":["post-1777","post","type-post","status-publish","format-image","has-post-thumbnail","hentry","category-studying","tag-china","tag-currency","tag-economy","tag-exchange-rate","tag-foreign-trade","tag-international-relations","tag-monetary-policy","post_format-post-format-image"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Chinese Currency Reforms \u2013 What Will World Trade Look Like with a Freer RMB? - Politics East Asia<\/title>\n<meta name=\"description\" content=\"This online discussion takes a look at Chinese currency reforms and their affect on China\u2019s foreign trade relations and economic growth.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.politicseastasia.com\/staging\/3558\/studying\/chinese-currency-reforms\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chinese Currency Reforms \u2013 What Will World Trade Look Like with a Freer RMB? - Politics East Asia\" \/>\n<meta property=\"og:description\" content=\"This online discussion takes a look at Chinese currency reforms and their affect on China\u2019s foreign trade relations and economic growth.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.politicseastasia.com\/staging\/3558\/studying\/chinese-currency-reforms\/\" \/>\n<meta property=\"og:site_name\" content=\"Politics East Asia\" \/>\n<meta property=\"article:published_time\" content=\"2013-12-05T14:00:56+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2013-12-05T14:23:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.politicseastasia.com\/staging\/3558\/wp-content\/uploads\/2013\/12\/Financial_centre_950x480opt.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"950\" \/>\n\t<meta property=\"og:image:height\" content=\"480\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Florian Schneider\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Florian Schneider\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.politicseastasia.com\\\/staging\\\/3558\\\/studying\\\/chinese-currency-reforms\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.politicseastasia.com\\\/staging\\\/3558\\\/studying\\\/chinese-currency-reforms\\\/\"},\"author\":{\"name\":\"Florian Schneider\",\"@id\":\"https:\\\/\\\/www.politicseastasia.com\\\/staging\\\/3558\\\/#\\\/schema\\\/person\\\/a140bd5ce2c4c52fdeb2b628bc80a1bb\"},\"headline\":\"Chinese Currency Reforms \u2013 What Will World Trade Look Like with a Freer RMB?\",\"datePublished\":\"2013-12-05T14:00:56+00:00\",\"dateModified\":\"2013-12-05T14:23:32+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.politicseastasia.com\\\/staging\\\/3558\\\/studying\\\/chinese-currency-reforms\\\/\"},\"wordCount\":369,\"commentCount\":8,\"image\":{\"@id\":\"https:\\\/\\\/www.politicseastasia.com\\\/staging\\\/3558\\\/studying\\\/chinese-currency-reforms\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.politicseastasia.com\\\/staging\\\/3558\\\/wp-content\\\/uploads\\\/2013\\\/12\\\/Financial_centre_950x480opt.jpg\",\"keywords\":[\"China\",\"currency\",\"economy\",\"exchange rate\",\"foreign trade\",\"international relations\",\"monetary policy\"],\"articleSection\":[\"Studying\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.politicseastasia.com\\\/staging\\\/3558\\\/studying\\\/chinese-currency-reforms\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.politicseastasia.com\\\/staging\\\/3558\\\/studying\\\/chinese-currency-reforms\\\/\",\"url\":\"https:\\\/\\\/www.politicseastasia.com\\\/staging\\\/3558\\\/studying\\\/chinese-currency-reforms\\\/\",\"name\":\"Chinese Currency Reforms \u2013 What Will World Trade Look Like with a Freer RMB? 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He is Professor of Modern China at Leiden University, editor of the journal Asiascape: Digital Asia, and academic director of the Leiden Asia Centre.\",\"url\":\"https:\\\/\\\/www.politicseastasia.com\\\/staging\\\/3558\\\/author\\\/schneiderfa\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Chinese Currency Reforms \u2013 What Will World Trade Look Like with a Freer RMB? - Politics East Asia","description":"This online discussion takes a look at Chinese currency reforms and their affect on China\u2019s foreign trade relations and economic growth.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.politicseastasia.com\/staging\/3558\/studying\/chinese-currency-reforms\/","og_locale":"en_US","og_type":"article","og_title":"Chinese Currency Reforms \u2013 What Will World Trade Look Like with a Freer RMB? - Politics East Asia","og_description":"This online discussion takes a look at Chinese currency reforms and their affect on China\u2019s foreign trade relations and economic growth.","og_url":"https:\/\/www.politicseastasia.com\/staging\/3558\/studying\/chinese-currency-reforms\/","og_site_name":"Politics East Asia","article_published_time":"2013-12-05T14:00:56+00:00","article_modified_time":"2013-12-05T14:23:32+00:00","og_image":[{"width":950,"height":480,"url":"https:\/\/www.politicseastasia.com\/staging\/3558\/wp-content\/uploads\/2013\/12\/Financial_centre_950x480opt.jpg","type":"image\/jpeg"}],"author":"Florian Schneider","twitter_misc":{"Written by":"Florian Schneider","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.politicseastasia.com\/staging\/3558\/studying\/chinese-currency-reforms\/#article","isPartOf":{"@id":"https:\/\/www.politicseastasia.com\/staging\/3558\/studying\/chinese-currency-reforms\/"},"author":{"name":"Florian Schneider","@id":"https:\/\/www.politicseastasia.com\/staging\/3558\/#\/schema\/person\/a140bd5ce2c4c52fdeb2b628bc80a1bb"},"headline":"Chinese Currency Reforms \u2013 What Will World Trade Look Like with a Freer RMB?","datePublished":"2013-12-05T14:00:56+00:00","dateModified":"2013-12-05T14:23:32+00:00","mainEntityOfPage":{"@id":"https:\/\/www.politicseastasia.com\/staging\/3558\/studying\/chinese-currency-reforms\/"},"wordCount":369,"commentCount":8,"image":{"@id":"https:\/\/www.politicseastasia.com\/staging\/3558\/studying\/chinese-currency-reforms\/#primaryimage"},"thumbnailUrl":"https:\/\/www.politicseastasia.com\/staging\/3558\/wp-content\/uploads\/2013\/12\/Financial_centre_950x480opt.jpg","keywords":["China","currency","economy","exchange rate","foreign trade","international relations","monetary policy"],"articleSection":["Studying"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.politicseastasia.com\/staging\/3558\/studying\/chinese-currency-reforms\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.politicseastasia.com\/staging\/3558\/studying\/chinese-currency-reforms\/","url":"https:\/\/www.politicseastasia.com\/staging\/3558\/studying\/chinese-currency-reforms\/","name":"Chinese Currency Reforms \u2013 What Will World Trade Look Like with a Freer RMB? 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