China has emerged as a major power in the world economy in recent years, so it seems natural to consider whether its currency - Renminbi, will also have a major role. However, at present, the Renminbi has not become international currency. Even though China's government has taken significant reforms towards internationalization of currency, question still remain: whether the authorities of China want to encourage international use of Renminbi. This paper will look at the current state of Renminbi, the factors that contribute to the international use of currencies and focus on a comprehensive analysis of benefits and costs for China to internationalize Renminbi in an exercise of international political economy. This paper admits that China's government is facing a tough decision regarding to what degree that Renminbi should be internationalized and argues that the speed of internationalization of Renminbi is the result of the calculation of cost and benefits including political as well as strictly economic considerations and the political struggle between those who benefit a those who lose from internationalization of the currency.