China's outward investment ranks third in the world, promoting the internationalization process of the renminbi

CCTV Finance News reported that in the first three quarters of this year, China's total industry outward direct investment was 923.68 billion yuan, a year-on-year increase of 4.4%. Against the backdrop of a complex and ever-changing external environment, China's outward direct investment has grown against the trend, with its investment scale firmly ranking third in the world. Chinese companies have gone abroad to build factories, with footprints covering 151 countries and regions around the world.

The South China Morning Post recently published an article stating that China's growing global investment demand may drive the internationalization of the renminbi, prompting the government to take more measures to relax cross-border capital flows, such as accelerating renminbi internationalization measures, maintaining exchange rate stability, and expanding currency exchange agreements.

The former chief economist of Agricultural Bank of China believes that "Chinese enterprises have a strong momentum in overseas investment, and as long as the investment is legal, the government will definitely support companies developing overseas. The internationalization of the renminbi is more driven by business demand, and China's attitude towards promoting the internationalization of the renminbi is expected to be very clear and firm

The report also mentioned that in 2024, capital account settlement will account for the largest proportion in China's cross-border RMB settlement, including securities investment and overseas direct investment. The report from Industrial and Commercial Bank of China shows that the total amount is 47.8 trillion yuan (6.71 trillion US dollars), accounting for 74.6% of the total settlement amount, and the overall settlement amount is about 64.1 trillion yuan.