China’s Economy in the Post-WTO Environment

China’s Economy in the Post-WTO Environment

Stock Markets, FDI and Challenges of Sustainability

Advances in Chinese Economic Studies series

Edited by Lilai Xu

The book explores the implications of both the extension of the market into key parts of the Chinese economy and the integration of China into the global economy. The main focus of the book is on the role and nature of China’s financial system and its ability to transform enterprise and household behaviour and the performance of investment finance, notably in the context of a two-way flow of foreign direct investment. All the extensive chapters highlight the issue of sustainability – some see the incompleteness of market reform as a problem; others are more willing to accept a pragmatic blending of the operation of the free market and government intervention.


Lilai Xu

Subjects: asian studies, asian economics, economics and finance, asian economics, financial economics and regulation, international economics


Lilai Xu Since its accession to the World Trade Organization (WTO) in 2001, China has grown at a rate approximately 7 percent faster than have Western countries. If this trend continues into the new decade, the Chinese economy may become the largest in the world some time between 2020 and 2030. Clearly, however, we cannot be certain that this pattern of growth evident in the early 2000s will continue into the 2010s. Those of us who study the Chinese economy are fully aware of the problems faced by China. Indeed, there is an influential school of thought that insists on the unsustainability of China’s economic system. Mindful of the opportunities and challenges faced by China, the Association for Chinese Economic Studies Australia (ACESA) organized an international conference on ‘China in the post-WTO environment’, held in Melbourne, Australia on 15–17 July 2009. The conference brought together scholars and experts from universities, research institutions and government bodies to discuss the key issues, the progress and the policy challenges in relation to the Chinese economy. This book consists of 12 chapters drawn from a total of 40 research papers presented at the ACESA conference. Each of the selected chapters has been subject to anonymous peer review by two academics from the relevant research field. These chapters provide valuable background information on the Chinese economy and offer insights into the many critical issues confronting China in the post-WTO environment. Part I ‘Stock market and financial services’ consists of three chapters. In Chapter 1,...