The Impacts Of International Reserve Currency System On China And China’s Responses

International reserve currency system is the basis of current international economic and financial system’s function. As the only core of international reserve currency system is the dollar, so it is also known as dollar standard. According to different currency status, international reserve currency system presents "center- periphery" structure. China is one of the trade account zone countries at the periphery, it has a huge demand for dollars. So there is a special asymmetrical economic relation between China and the United States, its concrete manifestation is the Sino-US “trade-funds” cycle. This cycle is pushed by Sino-US trade balance, supported by China’s foreign exchange reserves, China reaps huge gains, but also bears risks and looses, so it has a tremendous impact on China’s economy. After the 2008 global financial crisis, voice of changing international reserve currency system is rising. As international reserve currency system’s single core is the root of the Sino-US “trade-funds” cycle, so changes in its composition will affect Sino-US economic relations, China must carefully deal with it and actively take part in it.This paper bases on the cutting angle of Sino-US economic relations, researches issues related to international reserve currency system on the perspective of China. The full text is composed of six chapters. The first chapter is introduction, it introduces the paper’s background and significance, reviews domestic and foreign scholars’ research achievements on international reserve currency system and Sino-US economic relations. The second chapter analyzes current situations of international reserve currency system, then describes the formation process of the Sino-US “trade-funds” cycle. The third chapter’s starting point is international reserve currency system’s single core, discusses causes of the Sino-US “trade-funds” cycle, and has an empirical analysis on it. The forth chapter analyses the impacts of the Sino-US “trade-funds” cycle on China, if the cycle dures longer, China will lose more. The fifth chapter predicts different evolution trends of international reserve currency system. China may say nothing about dollar standard currently, but in the long term, we musrt firmly support the reform actions. Finally, on the basis of the previous five chapters, this paper puts forward policy suggestions on how China should deal with and participate in the reform of international reserce currency system.China is a typical peripheral country, through the analysis of Sino-US economic relations, we can find that the “center-periphery” structure violate the interests of mosrly periphery countries in many aspects, it should not be long-lasting. International reserve currency system will eventually evolve towards diversification pattern.