Table of Contents

China in the Global Economy

China in the Global Economy

Edited by P. J. Lloyd and Xiao-guang Zhang

China in the Global Economy focuses on the theme of twin transitions occurring in the Chinese economy: the transition from a centrally planned economic system to a market oriented one, and from an agrarian to a modern industrialised society. China’s exporters face unprecedented competition in the world market and the flow of foreign direct investment has fallen restraining the growth of the domestic economy. These new challenges have fuelled debate on the perspective of the Chinese economy and its role in the global economy.

Chapter 1: Introduction

Peter Lloyd and Xiao-guang Zhang

Subjects: asian studies, asian business, asian economics, business and management, asia business, international business, economics and finance, asian economics

Extract

Peter Lloyd and Xiao-guang Zhang China has experienced rapid growth and development in the past two decades of economic reforms. Yet, it is still facing two historical transitions: an institutional transition from a centrally planned economic system to a marketoriented one, and an economic transition from an agrarian society to a modern industrialized one. In both areas, China still has a long way to go. The rapid growth and structural changes over the past two decades that have brought China closer to achieving these goals have also created new challenges and problems. In recent years the Asian financial crisis has cast a shadow over China’s long-term growth prospects. Since the Asian financial crisis, the growth rate of the Chinese economy has been declining from historically high levels. Deep-rooted problems, such as unemployment, surplus rural labour, nonperforming debt in state enterprises and banks, and income inequality, have resurfaced, potentially undermining the sustainability of growth. With the dramatic change in the external environment following the Asian financial crisis, China’s exports have confronted unprecedented competition in the world market and the inflow of foreign direct investment has fallen, further restraining the growth of the domestic economy. These new challenges and problems have triggered a new round of debate among economic researchers and policy-makers on the prospects of the Chinese economy and its role in the global economy in the new century. The chapters in this volume contribute to the current debate on some of these challenging issues. They are selected from papers...