China’s Finance: Sovereignty vs Caution

A prominent Chinese economist (Xia Bin) argues for fully marketising domestic finance while limiting capital openness to shield the real economy, while outside liberal economists (Alicia García‑Herrero) counter that only decisive RMB internationalisation will deliver true monetary sovereignty and insulation from dollar leverage. The debate frames finance not merely as supportive infrastructure but as a direct instrument of national power with tradeoffs between stability and geopolitical leverage. — How Beijing balances domestic financial liberalisation against controlled global opening will shape the future of the renminbi, global reserve arrangements, and the distribution of economic coercion (sanctions) between China and the United States.