Counteraction to China?Impact of the U.S.International Development Finance Corporation on China’s Development Finance

The United States passed the Better Utilization of Investment Leading to Development(BUILD Act),as a counterweight to China’s overseas development activities.Under the Act,the US established a new federal agency,the U.S.International Development Finance Corporation(DFC),to enhance U.S.development financing capabilities.To better understand the impact of the DFC on China’s development finance,this article analyzes the DFC’s purpose,functions,structure,and funding.Then it focuses on the purpose of establishing the DFC,providing a preliminary analysis of the potential motivation for its establishment.It also compares the China Development Bank(CDB)and the DFC based on their focused sectors.Finally,through an in-depth analysis of financial frictions in China-U.S.relations,this article argues that the DFC competes with China’s overseas development financing activities in the context of broader strategic competition between China and the U.S.

China's Real Estate Finance:Undergoing Directional Change

Influenced by a host of new policies on real property loans and foreign investment restrictions, real estate finance is in the midst of directional change characterized by fluctuations in domestic and overseas financing arrangements. The long-

A COMPARISON OF DOMESTIC FINANCE IN CHINA AND AMERICA(Summary)

The purpose of this report is to help people to realize the reform of domestic finance in China and the differences of Chinese domestic finance vis-a-vis that of the United States. The domestic finance in China has been developing rapidly in recent years, so nothing has a stable status as we observe the sphare of domestic finance in China. However, as long as we know its nature and development, whatever the status may be in the future, we are still able to know the main distinctions between the two domestic

Finance Minister Liu on Taxation System Reform in China

The new taxation system has beenoperated smoothly and its positiveresults have become evident since Chinacarried out the reform of the taxation systemin 1994.This was said by Mr.Liu Zhongli,Finance Minister and Director-General ofthe State Administration of Taxation at apress conference recently.The new taxationsystem brought RMB100 billion more to theTreasury in 1994,and the figure is expectedto be bigger in 1995,he disclosed. The minister said that the state hasadopted an appropriately tight financial

Seven Decades of China's Fiscal Modernization

After its founding in 1949,the People’s Republic of China'started to modernize its fiscal system-an essential part of its broader modernization drive.Its unified and wellfunctioning fiscal system supported the stability of the nascent government,and helped stabilize the economy and restore public order after then.In the era of the planned economy,public finance in the country was put at the service of economic plans while striving to reach a fiscal equilibrium,which was of great significance at that time.Economic equilibrium,including fiscal,credit and material equilibrium,was perceived as a manifestation of macroeconomic stability.Problems encountered during the era of the planned economy led to the launch of a reform and opening-up program-a brilliant chapter in modern Chinese history.The Third Plenum of the 11th CPC Central Committee marks a brand-new era of reform and opening-up.In this transformative period,China’s fiscal system was initially decentralized to keep abreast of its“planned commodity economy.”After the goal of socialist market economic reform was announced in 1992,China’s fiscal reforms embarked on a fast track.As China'strived to build a public finance system compatible with a socialist market economic system,fiscal reforms took place and fiscal policy played a more important role in macroeconomic regulation.The Third Plenum of the 18th CPC Central Committee held in November 2013 set the goal of the reform to establish a modern fiscal system.Afterwards,China deepened its fiscal reforms,focusing on budget management,taxation and reform of central-local fiscal relations.

China＇s Electricity Industry at the Crossroads： New Challenges for Developing the Right Model of Regulation

China is facing important challenges stemming from increasing rates of urbanization and aging population. To pursue its ＂harmonious society＂ objective without disrupting its path to development major overhauls are necessary in education, health, social security and above all in public services, particularly in electricity. China＇s electricity industry is at the crossroads. To meet the challenges, new models of regulation should be developed and applied. This paper examines the current state of the Chinese electricity industry and the burden it imposes on its public finances. It also reviews and critically examines the existing FIT （Europe） and RPS （USA） models of regulation and of promotion of renewable energies and advances on whether they are advantageous for China. It is argued that the electricity industry has already undergone important reforms but cross subsidies still exist, equivalent to 1.5% of China＇s GDP. Drastic rate rebalancing policies will create sustainability problems and a deterioration of China＇s public finances. To avoid such negative results, China has to further reform its electricity industry gradually and use wisely FIT-type programs to bring renewables into the grid and fulfill the Kyoto Protocol

COMPARATIVE STUDY OF FINANCING SOURCES BETWEEN CHINA AND AMERICA(Summary)

Comparative study is a very useful technique for creation. The comparison of financial management systems between China and the United States favours both the economic restructuring of China and the growth of American economy. There are three benefits for China to make such a comparative analysis: First, we could find where the similarities and differences exist in ease we lose opportunities to do businesses with foreigners only owing to the misunderstanding

Channels and Legal Framework for Power Sector Financing in China

Since early 1980s, in particular during the period of "7th and 8th Five-year Plan"(1986- 1995), China’s power sector has adopted successfully the policy of multichannel and diversified financing to raise funds as well as encouraging to introduce foreign funds for its development and has got tremendous achievements. This paper describes the channels and methods to raise funds from both domestic and international market to meet huge demand of funds amounting to 690 billion yuan RMBfor the sector development during "gth Fiveyear Plan" period (1996-2000) in the wake of overall reform and achievements in the past decade. This paper also presents the legal framework supporting to suit for the methods and channels of the financing. Some suggestions have been made.

China’s Fiscal Policy in the Past Seven Decades:Characteristics,Experience and Prospects

The paper reviews the fi scal policies adopted by China in the past 70 years,summarizes their characteristics at different stages and looks into the future fiscal policy options for China.The fiscal policy history since the founding of the People’s Republic of China can be divided into four stages.Stage 1:1949-1952,the market-oriented fi scal policy aiming to restore the national economy;Stage 2:1953-1978,the planned fi scal policy;Stage 3:1978-2012,the fi scal policy accommodating the needs of economic transformation;and Stage 4:2012-present,the fiscal policy accommodating the needs of the new era.A look at the above fiscal policy history draws the following conclusions.(1)The goal of the fiscal policy should be set based on a correct understanding of the role of the state;(2).For the fi scal policy to work,it must respect the fi scal law;(3)The fi scal policy must aim higher than the goal of macroeconomic stability and provide guarantees for industrialization and modernization;(4)The government should understand fi scal defi cits while proactively guarding against fi scal risks;(5)The implementation of the fi scal policy must go hand in hand with the fi scal reform;(6)The funding for the fi scal policy must come from diverse sources;(7)The choice of the fi scal policy should fully consider external impacts.The future fi scal policy should revolve around serving the modernization of china’s governance system and capacity,and serving China’s contribution to the building of a community with a shared future for humanity.We should update our knowledge on the fi scal policy to support the decision-making for the choice of fi scal policy.The goal of fi scal policy should be set in coordination with that of other policies.Moreover,from the perspective of the government’s disposable revenue and cash fl ow,the paper probes into the space and challenges for future fi scal policy and sorts the problems of the transmission mechanism that might prevent the fi scal policy from working.

Fintech,Digital Financial Inclusion,and National Financial Competitiveness

With the rapid development of fintech as represented by the internet,artificial intelligence,blockchain,cloud computing and big data,especially the evolution of big data and deep learning,and the major changes in financial service models and products in recent years,the development of global inclusive finance has undergone different stages,from“micro finance,”through“inclusive finance,”to“digital financial inclusion.”In the context of growing global competition in the financial sector,many countries are promoting digital financial inclusion and formulating applicable national development strategies.Therefore,it is suggested that China should further strengthen support policies,increase its influence on global financial governance,construct a long-term regulatory mechanism for digital financial inclusion,and build digital inclusive financial infrastructure in order to improve the international competitiveness of China’s financial industry.