This dissertation examines the rise of the Chinese national currency - Renminbi - in the world financial markets. Related to this issue, two important questions should be answered: (1) why China has to transit from a country with the world’s most currency reserves to a country with a reserve currency, and (2) whether and how China can make this transition. The related details are presented in many sections through theoretical and empirical, qualitative and quantitative analyses. A new approach to investigate this issue of Renminbi is also introduced: to distinguish between push and pull factors. The main result of this dissertation is that the Renminbi can become an important reserve currency along with the dollar and the euro in the foreseeable future.