Study Of RMB Cross-Border Flows Under The CAFTA Framework

In 2010, China-ASEAN Free Trade Area (CAFTA) was formally established, the economic and trade cooperation and exchanges between China and ASEAN has been elevated to the level of the construction of the institutionalization, with bilateral trade and investment scale expands unceasingly, the RMB has become the main currency of cross-border trade payment and settlement, which rapid growth in the circulation of the ASEAN countries. As an important part of financial reform, the effective flow of cross-border RMB has important meanings in promoting China-ASEAN Free Trade Area strategy upgrading and realizing the RMB regionalization and international development. The Guangxi Zhuang Autonomous Region adjacent to Vietnam, which is the main window and platform of China facing Association of South-East Asian Nations (ASEAN) for opening cooperation, and is one of China’s cross-border RMB settlement and border financial reform Pilot areas. The relevant economic data of Guangxi has strong regional representative and reference value. Therefore, under the framework of CAFTA and combined with sample data of Guangxi, studies the issue of cross-border capital flows of the RMB, can be more practical meaning.This paper reviews the theories of RMB cross-border flows, and as a theoretical basis, adopts the method combining the qualitative analysis and the quantitative analysis to research and analyze the present situation of RMB cross-border flows under the CAFTA framework, from the scale, structure, channel conditions and effect of four aspects. Meanwhile, the paper also adopts a large number of economic data and charts for evidence. It conscientiously summarizes the specific issues of RMB cross-border flows under the CAFTA framework.It is concluded that the less channels of RMB cross-border, the slow development of service trade and foreign investment, the control of capital flow, the unsound backflow mechanism, and the underdeveloped offshore market are main factors as the conclusion which block the RMB cross-border flows.Finally, the paper puts forward policy suggestions in the development of the RMB cross-border flows from two angles. One is to expand the regional economic and trade cooperation, the other one is to strengthen the financial management monitoring.