CIIE, a strong engine for Renminbi internationalization

He Weiwen

Editor’s note: He Weiwen is a senior fellow at Chongyang Institute for Financial Studies and former economic and commercial counselor of Chinese consulates in San Francisco and New York. The article reflects the author’s opinions and not necessarily the views of CGTN.

The ongoing 3rd China International Import Exposition (CIIE) in Shanghai has witnessed good interests and an actual rise in the Renminbi settlement for foreign goods and services deals at the mega event.

The past year since the second CIIE has witnessed a steady appreciation of the Renminbi vs. U.S. dollar, from 7.008 on November 6, 2019, to 6.629 on November 6, 2020. In the adverse world environment – the rampant spread of COVID-19 and the worldwide recession, China has become a bright lighthouse in the darkness, with effective control of the virus and a strong rebound of the economy.

China’s GDP registered 0.7 percent growth year-on-year and has been expected by IMF to grow by 1.9 percent for the whole year of 2020, the only major economy in the world that will realize a positive G.D.P. growth.

In comparison, the world GDP has been expected to fall by 4.4 percent, and the developed economies as a whole will fall by 5.8 percent and new emerging and developing economies fall by 3.3 percent. The robust recovery in China’s consumer market and in infrastructure investment serves as a magnetic for world sellers. The strength of the Renminbi and the Chinese economy has made the Renminbi more attractive and safer for the world business community at the current CIIE…….more here

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