China Construction Bank Of China

These effective strategies helped Hong Kong overcome the financial crisis. All these facts fully demonstrated that China is a responsible big country. After the Asia financial crisis, the importance of China's economy has been brought into focus; China's neighboring countries have begun to recognize the influence of the Renminbi.

The Chinese government owns all the land and protection of property is decreasing. The corruption of the Chinese government continues as they reject core reforms such as disclosure of assets by officials, oversight of bodies, and lifting political restraints on citizens. To continue the problem China has a weak financial regulation, use of debt to overproduce, the culture of saving and not spending, and profound fear of innovative ideas. However, China’s use of

In 2008, the Global Financial Crisis broke out; both the American economy and the economy in the West suffered a hard blow. However, a big economy system in the East emerged unexpectedly. China is now able to challenge the America’s decades-long dominant position in economic area. Started during the middle of 1990s, China’s manufacturing industry developed rapidly that billions of exports were floating out, and China was given the title of “the world’s factory”(BBC). By the end of 2010, China with a GDP of $5.8 trillion, surpassed Japan’s GDP of $5.48 trillion, became the world’s second largest economy system (BBC). China also exceeded Japan became America’s largest foreign securities holder. Since then, China has been seen as the US’s

When China joined the WTO in 2001, its banking sector was in a very weak state, troubled by a serious non-performing loans (NPLs) problem. Thus, numerous measures like a large sum of government funds (roughly 20% of China’s GDP in 2004) have been provided to resolve the NPLs problems. Since 2003, China Banking Regulatory Commission (CBRC) was established to strengthen bank regulation and this has improved performance due to foreign competitors, lower transaction cost & easy administrative procedure for obtaining the loan with added tax saving. While Geeli has limited debt on its balance sheet there are still drawbacks with these options as emphasized below:

Randall submits that building firewalls and Chinese walls will abolish the synergies between financial and non-financial institutions. In addition, Randall also points out that government should restrict the areas where synergies is not required to cancel out by building Chinese walls and where the risk is acceptable rather than stop supporting creditors of fragile banks. Randall suggests that there should be barrier for non-banks to enter into banking sector in order to avoid the enlargement of safety net (Randall, 63-74).

Investments as in the case of Chinalco's bid for Rio-Tinto, allowed China to expand its economy. China's state-owned and state-controlled banks were able to weather the economic crisis of 2008 and 2009 in contrast to many western countries. The state could force Chinese banks to start lending money again, without having to wait for the banks to do it on their

the Chinese financial integration on C, S and I in the rest of the world?

High government intervention has also had positive effects on China’s economy. Since the Global Financial Crisis of 2007-08, China has become increasingly

Canadian Imperial Bank of Commerce or CIBC as most know it, has been operating since 1867. They are a profit corporation that offers public banking and financial services to individuals, small businesses, and also other corporations. CIBC is a Canadian corporation that has branched out and now does business in Europe, Asia, Australia, Latin America, and of course The United States (Wikipedia).

China’s financial markets are still fairly primitive however China has one of the highest saving rates in the world. This is Largely due to rising incomes, but also due to the lack of a robust social safety net to protect citizens from changing economic circumstances such as unemployment and population ageing. The banking sector was only opened to foreign competition at the end of 2006. This forced Chinese banks to become strong and efficient so as to compete with the international banks. In making the banks more efficient, state owned enterprises also had to increase their efficiency as they no longer were allowed to take low cost loans that were running at a loss for the state bank. These economic developments coupled with increased prudential standards and the improvement of lending practices has allowed for savings to be allocated efficiently for investment purposes, to support medium term growth in the Chinese economy.

Over the past ten years China’s financial flows have fluctuated a fair bit, with down turns and upturns throughout. With an obvious trough when the GFC hit. Although as soon as the GFC finished China’s financial flows bounce straight back up and boomed. As of recent China’s financial flows have been in a deficit and is now looking to be bouncing back up into the positive numbers. (Refer to Figure C)

Ian Bremmer profoundly states that he did not witness a global financial crisis. He witnessed a financial crisis with Western, free market, countries while China was not phased because they are the owners of their banks. Additionally, he claims that when one confronts a Chinese citizen and asks of his or her opinion of their government, they are generally happy with their state; unlike their Western counterparts. Ian Bremmer quotes Chinese Premier Wen Jiabo’s definition of state capitalism, “The complete formulation of our economic policy is to give full play to the basic role of market forces in allocating resources under the macroeconomic guidance and regulation of the government. We have one important piece […] that both the visible hand and the invisible hand are given full play in regulating the market forces.” The Chinese government also ensures that they are creating thousands of new jobs each year to create an easier access from poverty to middle class without any social threats. Lastly, a key in China’s state capitalism market is that they have a strong grip and direction on their banking

China has undergone three major stages since 1979 (Lecture). In the first stage (1978-1984) China increased the economic productivity of all industries by improving the incentive structures. In doing so, China was able to increase agricultural output by 42 percent. By imposing these urban reforms, the effort became to increase autonomy of enterprises’. During the second stage (1984-1991) the incentive of the reforms were to improve resource allocation mechanisms (Henderson pg. 40). The core focuses of these reforms were, the material management system, the banking system, and foreign-trade management system. The current third stage of reform (1992-present) has dealt with the macro-policy environment, as well as the reform of exchange-rate pricing and interest-rate policies.

This paper was prepared for GD530 Economics and the International System, taught by Professor Snow

Since the financial tsunami and the bankruptcy of Lehman’s Brother in September 2008, the world’s economy took a deep plunge and the Chinese economy is no exception. In the wake of the global financial crisis, The Economist (2008) reported that China’s real GDP growth slowed to 9 percent in the third quarter of 2008 and export growth slowed to 21.1%. It was, in fact, well below analyst expectations and recent