In a podcast on the internationalisation of the renminbi (RMB), SMU Associate Professor of Finance Fu Fangjian said China is unlikely to pursue rapid RMB internationalisation in the same way the US dollar evolved, as China remains committed to maintaining capital controls and safeguarding its manufacturing-led economy. Assoc Prof Fu noted that excessive reliance on currency expansion could weaken domestic manufacturing capabilities and eventually hollow out industry — an outcome China is unwilling to risk. He added that China’s policy approach has traditionally been gradual and measured, suggesting that the RMB’s internationalisation will continue to progress step by step rather than through sweeping reforms.
