China, the second-largest economy in the world after the United States, has started the process of internationalizing its currency, the renminbi (RMB), to make it a global reserve currency. To this end, an offshore market for RMB-denominated bonds (dim sum bonds) has been established in Hong...

This article reviews the ongoing internationalization of the Chinese RMB and some policy changes related to capital flows across China. In particular, it discusses several recent economic reforms, including the Wenzhou experiment, the growth of cross-border banking, and the new currency zone in...