Analysis On RMB Cross-border Settlement In East Asia

In 2015, a series of landmark events around the world attract worldwide attention, “the Silk Road Economic Belt and the 21st-Century Maritime Silk Road" strategy was propelled steadily, the Asian infrastructure investment bank dominated by China was Officially established, and the Chinese RMB was Identified in the IMF’s SDR. The internationalization of RMB China, once again become a hot. The current world economy is undergoing profound and complex changes, China, as the world’s second largest economy, is also experiencing a new round of international wave. The voice of RMB internationalization has long been heard, but the reality is, RMB settlement is not carried out smoothly. Especially the US dollar and euro has carved up the market of the International Monetary. The extreme mismatch of the position of currency and trade has weakened the pricing power and the right of settlement of the RMB in the international commodity, which has affected the further development of RMB Cross-border settlement.China is located in the center of Asia, south of Russia, Mongolia, Korea and other countries, north of India, Vietnam, Myanmar and other countries, which gives the Renminbi a natural advantage in Asia development of local currency settlement. The US dollar and euro which has been used widely was influenced by economic crisis in 2008, which provides China a rare opportunity to affect the enterprises of various countries considering to continue the use of dollar or choose another currency. This paper focused on the regionalization of RMB in Asia, according to each country’s specific national conditions and trade practice. By studying the settlement development path and current situation of RMB settlement from the aspects of economic, cultural, and political analysis, this paper draws the following viewpoints. The Chinese RMB was Identified in the IMF’s SDR represents the international community’s recognition of RMB; RMB settlement in cross-border trade have achieved preliminary achievements; at the same time, China also faces a lot of challenges such as clearing mechanism was lack of efficiency. RMB was in lack of return channels, Chinese enterprises in international trade has no pricing right, and so on; also, due to historical and economic conflicts with the neighboring countries such as Japan, Russia, South Korea, RMB settlement faces more pressure.Finally, in view of the above problems, this paper puts forward some countermeasures from the aspects of the state, government, bank and firm: China should improve the investment to neighboring countries and actively establish a positive image in the international community, strengthen the "soft power"; the government needs to strengthen top-level design, enhance the overall planning, launched various social classed. Also, government should encourage enterprises to develop innovation and maintain a stable exchange rate; commercial banks should take the initiative to promote financial reform of the banking sector, enhance the capability of risk-prevention, learning from foreign banks, and improve the efficiency of clearing and settlement; manufacturers should strengthen high value-added product development, or considering to establishment of product processing plant in East Asia where the labor is cheap,to improve their bargaining power in foreign trade.