Law In China’s Monetary Sovereignty Under Financial Globalization

The research on National monetary sovereignty is the macro-view layer of Law andEconomics, Political science, which is a newly emerging interdiscipline; is a major field ofstudy on International economic law and international political economy. In the context ofthe hot issues on Financial crisis and the RMB exchange rate, The research on Nationalmonetary sovereignty is more practical significance, but also an important issue on thesafeguard of national economic sovereignty under the deepening of financial globalization.Monetary sovereignty comes from the Economic sovereignty. The country’s economicsovereignty is an integral part of national sovereignty. National sovereignty is afundamental property of a country, in international law refers to the country’s independentprocessing of its internal and external affairs of the highest power. As the political andeconomic sovereignty can not be separated, as the international economic and tradedevelopment, the modern state sovereignty is no longer limited to political, but ratherextended to the economy, or culture. The principle of national economic sovereignty hasbeen established as the most basic international economic law code of conduct andguidelines for action. Practice shows that the theory of national sovereignty: Politicalsovereignty is the prerequisite for economic sovereignty, political sovereignty gets betterprotection from economic sovereignty. National economic sovereignty involves Nationalpolitic security.Background of Financial globalization, National monetary sovereignty is facing theimpact of Financial innovation and technology development. The exercise of monetarysovereignty of developing countries have to be subjected to pressure of the financial power.In the global financial crisis, We need for reflection. Perspective of the financialinnovation, currency perspective of innovation and technological progress, this paper willanalyze challenges to China’s monetary sovereignty under financial globalization, attemptto make a Response analysis with our financial situation and status of the legal system, topropose some improvement recommendations.