Greater Mekong Subregion Chinese Network And Cross-Border Use Of Rmb

Today’s world is undergoing major changes unprecedented in a century,and China is also at a critical juncture on the road to a new journey towards the second centenary goal.At this stage,it is of great significance to further promote the cross-border use of RMB in China’s foreign economic and trade exchanges and reduce the foreign exchange risk and settlement risk of using media currencies,so as to protect the interests of cross-border economic and trade enterprises,smooth the cross-border flow of funds,and help the good operation of the international circulation.However,the cross-border use of RMB should not only consider common factors such as bilateral political and economic and trade relations and economic development level,but also consider the special individual factors of the regions where RMB is used abroad,so as to steadily promote the cross-border use of RMB in different(sub)regions according to local conditions.In view of this,from the perspective of the regional particularity of the cross-border use of RMB,this paper focuses on the crossborder use of RMB in the Greater Mekong Subregion(GMS),a special geographical region,combines the commonality and individuality of the crossborder use of RMB,reveals the regional characteristics that have rarely been mentioned in many previous studies,and attempts to explore the targeted mechanism and promotion strategy of cross-border use of RMB.The Greater Mekong Subregion(GMS)was chosen for three reasons.First,the GMS sub-region has a unique global Chinese network advantage,which is a special factor that other regions do not have.In this region,nearly one-third of the world’s overseas Chinese are gathered,and for the proportion of Chinese in the country’s total population,the proportion of Chinese in GMS countries is at a high level in ASEAN and even Southeast Asian countries.And they have strong economic strength,and there are many Chinese chambers of commerce,associations and Chinese-funded enterprises in various countries,which have made significant contributions to the local economic development.The Chinese diaspora and its economic influence have enabled GMS to have a strong Chinese social network,which reduces obstacles and bridges economic and trade cooperation such as bilateral cross-border trade and cross-border investment,and also increases the acceptance of the use of RMB in the region.However,there is little literature to study the cross-border use of RMB from the perspective of Chinese networks in the GMS sub-region.Second,a certain scale of cross-border use of RMB has been formed in the GMS sub-region.In the GMS sub-region,both the scale of RMB reserves and the scale of RMB crossborder receipts and payments have increased to a large extent,and the monetary cooperation between China and GMS countries continues to deepen.Third,China and the GMS5 countries have formed a relatively complete bilateral political and economic cooperation mechanism,and the LMC is not only a "golden model" for sub-regional cooperation,but also an important external factor to ensure the cross-border use of RMB in the subregion.Therefore,this paper focuses on the geographical and cultural particularities of the Greater Mekong Subregion(GMS),and studies how to use its unique Chinese network characteristics and advantages to expand the cross-border use of RMB from the GMS sub-region and enhance the influence of the RMB sub-region,aiming to provide a new perspective for the research on the cross-border use of RMB between sub-regions and new ideas for promoting the sub-regionalization of RMB.In order to study the above problems,the first and second parts of this paper summarize and review the relevant literature,define the concept of the Greater Mekong Subregion(GMS)Chinese Network and give the theoretical basis.The third part uses the latest social network analysis method to conduct sociological analysis of GMS Chinese network: firstly,the geographical influence of GMS Chinese network is analyzed from the aspects of geographical environment and regional identity,and the development process and current situation of GMS Chinese network are summarized.Secondly,this paper uses the stock data of Chinese in various countries in GMS to construct the Chinese network in the Greater Mekong Subregion(GMS),and analyzes the structural characteristics of the Chinese network in the GMS subregion.In addition,this paper analyzes the externalities of Chinese networks in the sub-region from three aspects: crossborder trade,cross-border investment and cross-border RMB use.Part IV provides case studies on the use of the CFA franc and the Australian pound,detailing the impact of migration networks in the two regions on regional currency use.This paper also summarizes the current situation of GMS Chinese network and RMB usage,which provides a realistic basis for the argument of this paper.The fifth part analyzes the mechanism of GMS Chinese network affecting the cross-border use of RMB in the Greater Mekong Subregion from three levels: RMB use in cross-border trade,RMB use for cross-border investment and RMB reserve status,and gives the research hypothesis of this paper.The sixth part is based on the GMS Chinese network and the use of RMB in the subregion,and the impact of the GMS Chinese network on the crossborder use mechanism of GMS RMB is empirically tested by constructing OLS and IV-2SLS models.Part 7: This paper gives research conclusions and puts forward targeted policy recommendations from three aspects: the use of RMB in cross-border trade in the Greater Mekong Subregion(GMS),the use of RMB for cross-border investment,and the status of RMB reserves.Through theoretical and empirical research,this paper concludes that first,the GMS Chinese network can reduce the bilateral cultural distance and institutional distance,and promote the use of RMB in cross-border trade in subregions;Second,the GMS Chinese network can improve the agglomeration effect of social capital in cross-border investment,increase the location advantage of Chinese enterprises in local investment,and promote the use of RMB for cross-border investment in sub-regions.Third,on the basis of expanding the scale of RMB use in cross-border trade and investment in the subregion,the GMS Chinese Network can increase the credibility and recognition of RMB in the sub-region,improve the externalities of the Chinese network in the sub-region,and further enhance the status of RMB reserves in the sub-region.