Since the essential differences among monetary forms lie not in outward patterns but in the functions money performs, I examine Chinese currency by its functions and ask whether it can fulfill the tasks required of capitalist money. I first show why China’s currency, as a unit of account and standard of price, lacks the uniformity and stability necessary for producers to calculate costs and judge demand, and why this very instability serves the interests of privileged groups in a backward and dependent economy. I then analyze currency as a means of circulation and argue that, under incomplete commodity production and deficient institutional prerequisites, money can circulate only within narrow limits and may even drive commodified relations back toward natural economy forms. Next I distinguish different stages of hoarding and explain the mixed and often distorted storage practices in China. I further discuss why monetary uncertainty obstructs payment relations in credit, wages, and rent. Finally, I examine China’s world-money position under foreign control and dependence, showing how monetary rights become a weapon used against the nation.