Opening of the financial system is a balancing act – and so far, Chinese authorities have been successful in maintaining the balance. Over the long term, structural conditions are in place for the renminbi to one day become a key international currency.
As the world economy grows, more liquidity providers may be needed – perhaps resulting in a multipolar financial system, with multiple reserve currencies. And international investors will want to increase their stake in the Chinese economy. China’s ongoing shift towards domestic consumption and services-oriented growth will mean an increased commercial potential across an array of sectors.