This paper reviews the development of cross-border trade in RMB settlement service in China and analyzes of its internal and external conditions, using the VAR model of China's cross-border RMB trade settlement related empirical analysis of quarterly data for the first quarter of 2010 to the first quarter of 2016 and explores the main factors affecting China’s cross-border RMB trade settlement and the mechanism of action. The study shows that the scale of China’s foreign trade, exchange rate, and the offshore market development has a positive role in promoting cross-border trade RMB settlement, but there is a significant impediment to inflation. In order to better promote the development of cross-border RMB settlement, this paper proposes constructing RMB settlement policy system of cross-border trade from the aspects of national policy support and market resource allocation, perfecting the RMB payment and settlement system, deepening the opening and reform of financial market, RMB return channels and other countermeasures.