Ascendancy of China in the global currency system as a factor of the Chinese foreign trade policy development
Importance The global economy is currently driven by new significant players. First of all, it refers to the Asian countries, and China, in particular. In this respect, it is reasonable to examine prospects for further position of the yuan within the global monetary system and evaluate possible outcome of this process for the Chinese foreign trade policy. The research focuses on international monetary and financial relations arising from internationalization of China's national currency, which may influence its foreign trade policy. Objectives The research substantiates possibilities of strengthening the yuan within the global currency system, and evaluates the effect of this factor on the development of the Chinese foreign trade policy, provides practical guidelines for supporting the Russian-Chinese ties as China becomes more entrenched. Methods The research is based on comparison and analysis of statistical data that allow identifying the principal factors for developing the foreign trade policy of China. Using the methods of logic analysis and synthesis, we determined the capabilities and prospects of strengthening the yuan within the global currency system. Results The article overviews China's initiatives for reinvigorating the yuan and determines the priority areas for further development of this process. We propose certain activities for improving the monetary policy of the country. Conclusions and Relevance We conclude that the yuan will be able to become one of the leading global currencies. In the future, the yuan may transform at least into the most important regional currency of the Pacific Rim or the global currency.