This paper attempts to explain the fundamental cause of China＇s growing imbalanee problems. Economic data confirm that the key structural imbalance problems, such as overinvestment, large current account surpluses, l...This paper attempts to explain the fundamental cause of China＇s growing imbalanee problems. Economic data confirm that the key structural imbalance problems, such as overinvestment, large current account surpluses, low consumption share of GDP and income inequality, have all deteriorated over the past few years, despite continuous policy efforts to correct these problems. We argue that the key determining factor is repressed factor cost, which is associated with heavily distorted markets for labor, capital, land, resources and the environment. These are like implicit subsidies for producers, investors and exporters. They boost growth and, at the same time, lift investment and exports. Previous policy efforts have focused more on administrative measures, which have not been sustainable. Therefore, a more fundamental solution to the imbalance problem lies in completing market-oriented re forms for production factors and allowing free markets to determine prices of labor, capital, land and resources.展开更多
The present paper explores the role of China in the creation of the current global financial crisis and the impacts of the crisis on its economy. It argues against the view that the ＂saving glut＂ in China （along w...The present paper explores the role of China in the creation of the current global financial crisis and the impacts of the crisis on its economy. It argues against the view that the ＂saving glut＂ in China （along with other Asian emerging economies） played a significant causal role in the crisis. The global financial crisis did not engender much damage in China＇s financial structure, thanks to the relatively closed, bank-centered financial system. However, the impacts on the ＂real＂ side of the Chinese economy were hard felt. Growth and employment have fallen, largely due to the decline in exports and foreign direct investment. The crisis reveals the vulnerability of the export-dependent growth pattern. Policy responses of the Chinese Government, including monetary, fiscal and social policies, have helped to stem the downfall of the economy in the immediate term, but some of the policies have not addressed the structural problems of the Chinese economy and might well aggravate such problems over time. The present paper proposes a tentative reform blueprint to rebalance the economy and to sustain long-term growth.展开更多
Since the 18th National Congress of Communist Party of China(CPC),China has made important achievements and headway in economic and social development.However,now more than ever the focus should be on the conflicts an...Since the 18th National Congress of Communist Party of China(CPC),China has made important achievements and headway in economic and social development.However,now more than ever the focus should be on the conflicts and problems that continue to exist in China’s economy.This paper examines six of them:(1)lack of a firm foundation for sustaining steady economic growth;(2)risks and hidden dangers in the financial,banking,and real estate sectors and massive overcapacity in some industries;(3)increasing difficulty in increasing agricultural production and raising rural incomes;(4)severe air,water,and soil pollution in certain regions and the arduous task of energy conservation and emissions reduction;(5)major structural problems constraining employment;and(6)issues of people’s livelihood that have been the source of dissatisfaction for many Chinese citizens.展开更多
文摘This paper attempts to explain the fundamental cause of China＇s growing imbalanee problems. Economic data confirm that the key structural imbalance problems, such as overinvestment, large current account surpluses, low consumption share of GDP and income inequality, have all deteriorated over the past few years, despite continuous policy efforts to correct these problems. We argue that the key determining factor is repressed factor cost, which is associated with heavily distorted markets for labor, capital, land, resources and the environment. These are like implicit subsidies for producers, investors and exporters. They boost growth and, at the same time, lift investment and exports. Previous policy efforts have focused more on administrative measures, which have not been sustainable. Therefore, a more fundamental solution to the imbalance problem lies in completing market-oriented re forms for production factors and allowing free markets to determine prices of labor, capital, land and resources.
文摘The present paper explores the role of China in the creation of the current global financial crisis and the impacts of the crisis on its economy. It argues against the view that the ＂saving glut＂ in China （along with other Asian emerging economies） played a significant causal role in the crisis. The global financial crisis did not engender much damage in China＇s financial structure, thanks to the relatively closed, bank-centered financial system. However, the impacts on the ＂real＂ side of the Chinese economy were hard felt. Growth and employment have fallen, largely due to the decline in exports and foreign direct investment. The crisis reveals the vulnerability of the export-dependent growth pattern. Policy responses of the Chinese Government, including monetary, fiscal and social policies, have helped to stem the downfall of the economy in the immediate term, but some of the policies have not addressed the structural problems of the Chinese economy and might well aggravate such problems over time. The present paper proposes a tentative reform blueprint to rebalance the economy and to sustain long-term growth.
文摘Since the 18th National Congress of Communist Party of China(CPC),China has made important achievements and headway in economic and social development.However,now more than ever the focus should be on the conflicts and problems that continue to exist in China’s economy.This paper examines six of them:(1)lack of a firm foundation for sustaining steady economic growth;(2)risks and hidden dangers in the financial,banking,and real estate sectors and massive overcapacity in some industries;(3)increasing difficulty in increasing agricultural production and raising rural incomes;(4)severe air,water,and soil pollution in certain regions and the arduous task of energy conservation and emissions reduction;(5)major structural problems constraining employment;and(6)issues of people’s livelihood that have been the source of dissatisfaction for many Chinese citizens.
