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What is the Chinese Yuan/Renimbi (CNY)?

Credit Ratings & Outlook

In the latest credit ratings from December 1970, Moody's gives China a Aa3 rating, with a positive outlook. Fitch has a stable outlook with a A+ rating. Finally, S&P last issued a AA- rating, with a stable outlook.

Sovereign credit ratings play an important part in determining a country’s access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.

Central Bank Rate

The current central bank interest rate is 6.56%. This is the same as 2011, which was 6.56%.


In 2010 the total GDP was $5,926,612,009,749 in US Dollars, while the per capita GDP was $4,428. It grew by 10.40% over the previous year.


The latest unemployment rate for 2010 is 4.10%.

Consumer Price Index

The latest consumer price index for 2010 is 115.43.

Political Structure

The current head of the government is Premier Wen Jiabao, and the head of state is President Hu Jintao (in an executive role).

Currency Details

The Chinese Yuan, denoted by CNY, is the official currency in China. Yuan in Chinese literally means a “round object” or “round coin” and is thus considered the base unit of a currency (for example, U.S. dollar is Mei yuan). From an international perspective, Yuan as an English word refers to the Renminbi (RMB, CN$).

When pronounced correctly, the word “yuan” should sound like the English word “wren”. One yuan is divided into 10 jiao or mao. One mao is divided into 10 fen. In Cantonese, jiao and fen are called ho and sin.

The renminbi is the legal tender in mainland China and is issued by the People’s Bank of China, the monetary authority of the People’s Republic of China. Although the official ISO code is CNY, the currency is also commonly abbreviated “RMB.”

China’s currency was once tightly pegged at 8.28 renminbi to one US dollar, making one yuan worth about twelve cents, and one jiao (or ten fen) worth about one cent. However, on July 21, 2005, China ended its decade old peg to the dollar to let the yuan fluctuate versus a basket of currencies.

Sovereign Ratings for China

Moody’s Rating
S&P Rating

Sovereign credit ratings play an important part in determining a country’s access to international capital markets, and the terms of that access. Sovereign ratings help to foster dramatic growth, stability, and efficiency of international and domestic markets.

What does it look like?

Political Structure

For a good part of the 20th century, the People’s Republic of China was a communist state and is still considered to be communist by many. Various terms have been used to characterize China’s regime, including authoritarian, communist, socialist, and/or a combination of those terms. China has been progressively heading toward beoming capitalist.

The People’s Republic of China’s government is controlled by the Communist Party of China. The party handles challenges of its rule with authoritarian methods but also makes attempts to minimize dissent with improvements in other areas of the nation’s affairs.

It is difficult to gauge the support of the Communist Party among the Chinese population. National elections are absent, and discussions in private depict conflicting views. A rising political concern in China is the growing gap between the rich and the poor as well as widespread corruption within the leadership.

The Communist Party of China’s organizational structure was built by Deng Xiaoping. The party’s highest body is the National Congress of the Communist Party of China, which meets at least once every 5 years. Listed in its constitution, the bodies of power in the Communist Party include:

. The Politburo Standing Committee, which currently consists of
nine members
. The Politburo, consisting of 22 full members (including the
members of the Politburo Standing Committee)
. The Secretariat, the principal administrative mechanism of the
CPC, headed by the General Secretary of the Communist
Party of China
. The Central Military Commission (a parallel organization of the
government institution of the same name)
. The Discipline Inspection Commission, which is charged with
rooting out corruption and malfeasance among party cadres

The Discipline Inspection Commission, which is charged with rooting out corruption and malfeasance among party cadres Other central organizations include:

. The International Liaison Department
. The United Front Work Department
. The Organization Department
. The Propaganda Department

There also exist “leading small groups,” which are smalll committees of high ranking party members within state agencies. These leading small groups can be found to be very influential especially within the area of foreign policy. Every five years, a National Congress is held serving two functions: to approve changes to the Party constitution and to elect a Central Committee of about 300 members. The Central Committee goes on to elect the Politburo. The main purpose of the Congress is to announce party policies and vision for the direction of China in years to come .

Prominent Figures

The Members of the Politburo Standing Committee of the Communist Party of China:

. Hu Jintao – President of the People’s Republic of China,
General Secretary of the CPC
. Wu Bangguo – Chairman of the Standing Committee of the
National People’s Congress
. Wen Jiabao – Premier of the State Council of the People’s
Republic of China
. Jia Qinglin – Chairman of the People’s Political Consultative
. Zeng Qinghong – Vice President of the People’s Republic of
. Huang Ju – Vice Premier, State Council
. Wu Guanzheng – Secretary of the Central Commission for
Discipline Inspection
. Li Changchun – no other positions held, known to many as the
propaganda chief

. Luo Gan – Political and Legislative Affairs Committee secretary

Unique Characteristics

On July 21, 2005, China revalued the Yuan from a US Dollar peg to allow the Yuan to fluctuate versus a basket of currencies. The Yuan signifies the commencement of what can be seen as a series of revaluations in the future. Since then, Malaysia has followed in China’s decision to drop the US Dollar peg, abandoning its seven-year-old practice of pegging then Malaysian ringgit to the dollar. The revaluation of the Yuan protects the Yuan from experiencing close ties to swings in the US Dollar.

Key Economic Factors Economic Overview:

As of late 1978, China began making the transition from a slow and inefficient centrally planned economy to an increasingly market-oriented system. China, politically, still operates under the political framework of Communist control, however the influence of non-state organizations and individual citizens has been steadily increasing. In addition, the state has switched from collectivization to a system of household and village responsibility, increased the power of local officials, and opened up the doors to increased foreign trade and investment. As a result, GDP has increased four fold since 1978.

Along with the benefits that the state has helped provide for China, it has also brought about the worst results of socialism and capitalism with bureaucracy, lassitude, and rising unemployment plaguing China. Anywhere from 80 to 120 million surplus rural workers are adrift between the villages and the cities, many of them subsisting through part-time, low-paying jobs. Popular resistance, changes in central policy, and loss of authority by rural cadres have weakened China’s population control program, which is essential to maintaining long-term growth in living standards. Another threat to long-term growth is the deterioration of the environment, notably air pollution, soil erosion, and the steady fall of the water table especially in the north.

Accession to the World Trade Organization (WTO) helps strengthen its ability to maintain strong growth rates, but simultaneously adds pressure to the system of strong political controls and growing market influences. However, foreign investment still remains a strong element in China’s remarkable economic growth.

Key Industries

Iron and steel, coal, machine building, armaments, textiles and apparel, petroleum, cement, chemical fertilizers, footwear, toys, food processing, automobiles, consumer electronics, telecommunications.

Agricultural Products:

Rice, wheat, potatoes, corn, peanuts, tea, millet, barley, apples, cotton, oilseed, pork and fish.

Import Commodities:

Machinery and equipment, oil and mineral fuels, plastics, optical and medical equipment, organic chemicals, iron and steel.

Export Commodities

Machinery and equipment, plastics, optical and medical equipment and iron and steel.

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