RMB Internationalization: A Fragile Impetus in the Global Monetary Order and the Dilemma of Regional Leadership

Minglou Li

doi:10.22151/politikon.56.1

Authors

Minglou Li University of Edinburgh https://orcid.org/0009-0001-7063-3642

DOI:

https://doi.org/10.22151/politikon.56.1

Keywords:

Monetary Power, Hegemony, Integration, China, US Dollar, Internationalization of the Renminbi

Abstract

The internationalization of the renminbi (RMB) is viewed by some experts as a potential challenge to the US dollar's (USD) hegemonic status in the current global monetary system. This study employs a mixed theoretical framework to delve into the prospective evolution of China’s monetary influence. By applying the power transition theory to analyze the global monetary power structure, this study evaluates China’s dissatisfaction as a potential challenger against the dominance of the USD and examines the power parity between China and the United States. On a regional scale, the analysis focuses on possible Asian monetary integration of the RMB-domination by adopting the neofunctionalist paradigm derived from the European experience and juxtaposing this process with European monetary integration. The analysis shows that China has not been able to directly challenge the dominance of the USD, nor has it effectively spearheaded the agenda for regional monetary integration. More specifically, China’s export-oriented growth model has hindered the emergence of the RMB as a substantial competition to the USD within East and South Asia.

Author Biography

Minglou Li, University of Edinburgh

Minglou Li is currently pursuing a MScR at the School of Social and Political Science, University of Edinburgh. He also received a MA Hons in International Relations from the same university. His research interests focus on international politics in monetary relations, currency integration, the history of financialization and monetary hegemony, theories of regional integration and their critiques. His current research project examines the barriers and potential for monetary integration in East Asia.

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