Caltech Professor Andrew Sinclair on China's Global Currency
For years, China has been developing an alternative to the US-led international order. The success of this effort hinges on China’s ability to convince its allies to abandon the US dollar as the global standard for trade and investment in favor of its currency, the renminbi (RMB). Due to China’s unique political economy, the core challenge for China lies in providing global investors access to a deep and liquid RMB capital market while maintaining domestic capital controls.