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China Financial Markets. Capitalism with Chinese Characteristics. Capitalism with Chinese Characteristics Cambridge University Press 9780521898102 - Capitalism with Chinese Characteristics - Entrepreneurship and the State - By Yasheng Huang Copyright Information Sloan School of Management, Massachusetts Institute of Technology CAMBRIDGE UNIVERSITY PRESS Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo, Delhi Cambridge University Press 32 Avenue of the Americas, New York, NY 10013-2473, USA Information on this title: © Yasheng Huang 2008 This publication is in copyright.

Capitalism with Chinese Characteristics

First published 2008 Printed in the United States of America A catalog record for this publication is available from the British Library. Library of Congress Cataloging in Publication Data Huang, Yasheng. Stephen Roach on the Next Asia: Opportunities and Challenges for a New Globalization. Uprising: Will Emerging Markets Shape or Shake the World Economy? Demystifying the Chinese Economy - Justin Yifu Lin. Exit from comment view mode.

Demystifying the Chinese Economy - Justin Yifu Lin

Click to hide this space WASHINGTON, DC – China had an advanced and prosperous civilization for millennia until the eighteenth century, but then degenerated into a very poor country for 150 years. Now it has resurged to become the world’s most dynamic economy since launching its transition to a market economy in 1979. What drove these fateful changes?

In my recent book Demystifying the Chinese Economy, I argue that, for any country at any time, the foundation for sustained growth is technological innovation. The Industrial Revolution accelerated the pace of Western progress by replacing experience-based technological innovation with controlled experiments conducted by scientists and engineers in laboratories. China failed to undergo a similar shift, owing primarily to its civil-service examination system, which emphasized the memorization of Confucian classics and provided little incentive for elites to learn mathematics and science. What Is Financial Reform in China? Premier Wen’s recent attack on the Chinese banking system last month has highlighted what was already a very interesting debate on Chinese banks and the Chinese financial system.

What Is Financial Reform in China?

There is a growing sense that the Chinese banking system is deeply flawed and needs to be reformed. But why should China reform its banking – hasn’t the financial system been a key component of China’s economic success in the past three decades? Just as importantly, what does financial reform mean – what kind of changes would need to be implemented for a real reform to have occurred? Before addressing these questions we should be clear that there is no meaningful difference between China’s banking system and its financial system.

Commercial banks dominate the country’s financial system and they largely determine pricing even in the informal banking system and in non-bank financial institutions. The Future of the Yuan. According to a growing chorus of pundits and economists, China -- already the world’s most prolific exporter, largest sovereign creditor, and second-largest economy -- will someday soon provide the world’s reserve currency.

The Future of the Yuan

According to this view, just as the dollar dethroned the British pound in the interwar years, so the yuan will soon displace the dollar, striking a blow to U.S. interests. As the economist Arvind Subramanian recently wrote, the yuan “could become the premier reserve currency by the end of this decade, or early next decade.” This view has gained traction as Chinese leaders have launched a concerted effort to internationalize the yuan. During the G-20 summit in November 2008, at the height of the financial crisis, Chinese president Hu Jintao called for “a new international financial order that is fair, just, inclusive, and orderly.” To continue reading, please log in. Don't have an account? Register Register now to get three articles each month. Why Capital Flows Uphill - Keyu Jin. Exit from comment view mode.

Why Capital Flows Uphill - Keyu Jin

Click to hide this space LONDON – At first, it seems difficult to grasp: global capital is flowing from poor to rich countries. Emerging-market countries run current-account surpluses, while advanced economies have deficits. One would expect fast-growing, capital-scarce (and young) developing countries to be importing capital from the rest of world to finance consumption and investment. So, why are they sending capital to richer countries, instead? China is a case in point. And China is not alone. Many observers believe that these global imbalances reflect developing economies’ financial integration, coupled with underdevelopment of domestic financial markets.

From ‘Made in China’ to ‘Bought in China’ - Ideas. The Impoverished “Asian Century” - Chandran Nair. Exit from comment view mode.

The Impoverished “Asian Century” - Chandran Nair

Click to hide this space HONG KONG – By 2050, Asia will have more than five billion people, while the European Union’s share of the global population will decline from 9% to 5%. Annual economic growth in Asia over the past 30 years has averaged 5%. Its GDP is projected to increase from $30 trillion to about $230 trillion by 2050.

"China’s Growing Growth Risks" by Yao Yang. Exit from comment view mode.

"China’s Growing Growth Risks" by Yao Yang

Click to hide this space BEIJING – If everything goes right for China, it will surpass the United States as the world’s largest economy, in current dollar terms (and more quickly in real terms), by 2021. Its per capita income will reach that of today’s lower tier of high-income countries. The Macroeconomics of Chinese kleptocracy. China is a kleptocracy of a scale never seen before in human history.

The Macroeconomics of Chinese kleptocracy

This post aims to explain how this wave of theft is financed, what makes it sustainable and what will make it fail. There are several China experts I have chatted with – and many of the ideas are not original. The synthesis however is mine. Some sources do not want to be quoted. Translating the Chinese Experience. Yikes!

Translating the Chinese Experience

Xi Jinping arrives tomorrow. The Economist last month added a regular standing section on China to the front of the magazine, along with the US, the Americas, Asia, the Middle East and Africa, Europe and Britain. They’ve generally been on top of things since 1845, when they added railroads to the list of things they covered.