Research on the Effect of China's Direct Investment on Countries along the Belt and Road Based on RMB Internationalization

Over the past decade or so, China has steadily and prudently promoted the internationalisation of the RMB on the basis of market- and enterprise-driven decisions, providing strong support for the smooth operation of the real economy.2022 The report of the 20th Party Congress proposed "orderly promotion of the internationalisation of the RMB". This indicates that the RMB has moved from a cautious stage of exploration and experience accumulation to a new stage of system design and action. This indicates that the internationalisation of the RMB has moved from the cautious stage of exploration and accumulation of experience to the new stage of orderly promotion of institutional design and action. Therefore, this paper adopts a linear and non-linear approach to construct a regression model to empirically analyse the impact of RMB internationalisation on China's outward foreign direct investment (OFDI) along the "Belt and Road". The results show that RMB internationalisation has a positive impact on China's outward FDI along the Belt and Road, and this impact varies with the increase in geographical distance; secondly, RMB internationalisation may also affect outward FDI by affecting foreign trade. This paper suggests that China should seize the opportunity of the development of the Belt and Road strategy and use RMB internationalisation to promote OFDI in countries along the Belt and Road, expand bilateral foreign trade and achieve common development.