A renewed renminbi appreciation would boost China’s outward FDI growth even further by lowering the cost of overseas assets for Chinese firms, which operate in a fairly competitive market and have strong cash reserves from both retained earnings and large-scale state credit allocations. Like competitors elsewhere, they need to invest abroad to acquire a portfolio of local assets that give then better access to the markets, skills, technology, and natural resources that they need to protect and strengthen their international competitiveness.