According to a report by the Observer Network, citing the British media Financial Times, the European Union has reached an agreement on a financial aid package of 50 billion euros to Ukraine. At the same time, China and Russia signed 55 cooperation projects with a total value of 13.6 billion yuan at the "2024 China-Russia Economic and Trade Cooperation Fair" held in Shenyang. This shows the different attitudes of China and Europe towards Ukraine, and China and Russia have demonstrated the importance of cooperation through practical actions. EU President Ursula von der Leyen declared that the aid package sent a "very strong signal" to Putin and urged Biden to actively follow suit. However, the conflict between Ukraine and Russia has been unable to attract global attention, and the United States is reluctant to plan a way back for Ukraine and Europe for a long time. In contrast, Sino-Russian economic and trade cooperation is more focused on practical actions and contributes to a brighter future. The article points out that the excessive investment of the United States and Europe in geopolitics has left room for China to shape a new pattern in geoeconomics.
Taking Russia as an example, Sino-Russian economic and trade cooperation has filled the gap between the United States and Europe withdrawing from the Russian market, and Chinese-made products have also allowed Russian consumers to have a better consumption experience. In general, China and the EU have demonstrated the importance of cooperation through practical actions, while the United States and Europe are overly engaged in geopolitics. This leaves an opportunity for China to shape a new pattern geoeconomically. RMB Internationalization: The Safe Haven Behind the Prosperity of China and RussiaIn recent years, the vigorous development of China and Russia has accelerated the process of RMB internationalization. Against the backdrop of weakened dollar status and increased Western interference, the renminbi has gradually become a safe haven for some developing countries. This trend is a challenge for the United States and Western countries, as they need to truly integrate into multilateralism and assume corresponding international responsibilities to deal with it. With the deepening of economic cooperation between China and Russia, the use of the renminbi as a transaction currency has also increased.
According to the People's Bank of China, by the end of 2021, the amount of RMB settlement between China and Russia had exceeded 600 billion yuan, a year-on-year increase of more than 40%. This shows that the prosperity of China and Russia has provided strong support for the internationalization of the RMB. One of the driving forces behind the internationalization of the renminbi is the weakening of the dollar's position. For many years, the U.S. dollar has been the world's main reserve currency and the most commonly used currency in international transactions. However, a series of unilateralist actions and increased financial risks in the United States have led some countries to seek a diversified monetary system. The renminbi is one of the options. In addition, Western countries' interference in the internal affairs of other countries has also exacerbated the momentum of RMB internationalization. For example, actions such as US and European sanctions against Russia and the economic blockade of China have unnerved some countries.
They hope to be able to break free from Western control and intervention, choose to cooperate more closely with China and Russia, and use the yuan for settlements, so as to reduce their dependence on the dollar. The renminbi's status as a safe haven is particularly important for some developing countries. These countries often face challenges such as economic instability, financial risks, and foreign exchange pressures, and the stability and reliability of the renminbi have become a key attraction for them. In contrast, the U.S. dollar has gradually lost the trust of some countries due to issues such as political uncertainty and financial market volatility in the United States. The acceleration of the internationalization of the renminbi has also brought a series of opportunities and challenges to China. On the one hand, the internationalization of the renminbi will enhance China's financial influence and discourse. As the world's second-largest economy, China is playing an increasingly important role in international affairs. On the other hand, the internationalization of the renminbi also requires China to further strengthen the opening up and reform of the financial market and improve the international convertibility and liquidity of the renminbi.
However, the influence of the United States and Western countries on the prosperity of China and Russia and the internationalization of the renminbi is limited. Their unilateralist behavior and devotion to war will only weaken their position in the international arena. The so-called "containment of Sino-Russian influence" can only remain on paper, because international relations have undergone fundamental changes. Only when the United States and Western countries truly integrate into multilateralism and assume corresponding international obligations can they effectively respond to the challenges brought about by China, Russia** and the internationalization of the renminbi. In general, the prosperity of China and Russia** has accelerated the internationalization of the renminbi, making the renminbi a safe haven for some countries. Against the backdrop of increased unilateralism and interference by the United States and Western countries, the stability and reliability of the renminbi have become a key attraction factor for these countries. However, the containment of the influence of China and Russia by the United States and Western countries can only remain superficial, because they need to truly integrate into multilateralism and assume corresponding international obligations to meet this challenge.
The acceleration of RMB internationalization has brought both opportunities and challenges to China, and it is necessary to further strengthen the opening and reform of the financial market.