Chapter 7: An Analysis of RMB Pricing Power of Commodities in China (Shanghai) Free Trade Zone1
1This chapter incorporates the research of “Analysis of cross-border RMB settlement based on exchange rate variation” supported by Ministry of Education.
According to 2011 BP Statistical Review of World Energy, China consumes 40% of metal, 20% of energy and 21% of agricultural products worldwide. However, always acting as a price taker because of an unfavorable position in the world commodity pricing system, China has to absorb huge economic losses by buying at a price that is too high, especially in energy and raw materials market. With the aim of safeguarding its economic interests, China must strive for the international pricing power…