Chinese Financial System

They followed by the theory’s application, modification and opposition. The second major section mainly discusses Keynesian’s effects on China’s economy. Firstly, the country’s economic history and the introduction of Keynesian need to be noted. Then this paper discusses the influence of its politics and its opening up policy, and the relationship with Keynesian economics. The recent financial crisis as a special incident and Chinese government’s response to it are then discussed, including proof of the practice of Keynesian in China, especially the four trillion stimulus package.

VAT reform in China: impact on construction and real estate. International Tax Review, 24(1), 22. Gelardi, A. G. (2013). Value Added Tax and Consumer Spending: A Graphical Descriptive Analysis. Asian Journal Of Finance & Accounting, 5(1), 1-20.

They followed by the theory’s application, modification and opposition. The second major section mainly discusses Keynesian’s effects on China’s economy. Firstly, the country’s economic history and the introduction of Keynesian need to be noted. Then this paper discusses the influence of its politics and its opening up policy, and the relationship with Keynesian economics. The recent financial crisis as a special incident and Chinese government’s response to it are then discussed, including proof of the practice of Keynesian in China, especially the four trillion stimulus package.

Since the beginning of the 1980s, foreign direct investment has been growing significantly throughout the world, and it has helped spur economic development and globalization. At the same time, China, as a representatively developing country, has merged into the world economy with amazingly high speed and become the second largest recipient of foreign direct investment in the world (J.Ying, personal communication, February 24, 2014). Reforms in the economic structure have gradually occurred throughout China since foreign investment has been playing an increasingly vital role in the economy. Thus, a large and increasing amount of discussion and analysis are focusing on the impacts of foreign investment on China’s domestic economy (Lau, C., & Garry, B, 2008). Recently, some people have argued that there are some cues implying a sluggishness in the foreign investment in China, and the role of the foreign investment as a contributor to Chinese net exports, industrial output or tax revenues is no longer as important as it used to be (Jia, 2011).

McIver, R. (2009), “China’s national banking system: commercialisation and financial stability”, Int. J. Of Economic Policy and Emerging Economies, 2(4), pp. 391–414. 11.

This essay will examine Schwartz's assessment that China faces Kaldorian collective action problems typical of late developers in order to illustrate the China's present and future economic development challenges. Section 1: Theoretical framework Ricardian Development Strategies According to Schwartz (2010), successful implementation of Ricardian development strategies involves using existing comparative advantages such as agricultural outputs or other primary product exports to drive economic development. This can also extend to low-value industrial activities such as textiles and garments (59-60). These strategies rely on the resolution... ... middle of paper ... ...nt. China's Great Economic Transformation (507-568).

Official figures shows that China's economy is the fourth largest in the world when measured by nominal GDP and is predicted to surpass Germany to take the third place in early 2008. 2.0 Summary China has come a very long way in the past 25 years. China has grown at nearly 10 percent a year over the past 20 years. China's explosion on to the world investment, production and trade scene is the product of its size, growth and openness. This is leading to tremendous changes in the global economy.

It has been the world's fastest-growing economy with consistent growth rates of around 10% over the past 30 years. A major contributor to China’s extraordinary growth has been its economic reforms coupled with the implementation of unorthodox policies. China’s success was first observed after it experienced a key change in the political and economic structure, when Deng, a pragmatic leader, came into power. He consolidated his power and began to put his realistic policies to work, in order to bring China back from the destruction that the Cultural Revolution had brought. Since 1978, China has begun to make major reforms to its economy.

Between 1949 and 1972, there was no trade between the United States and Mao’s Communist China. In late 70s, China went through economic reforms and global trade increase ten times. Since the late 80s, United States has had a bilateral trade deficit with China; annual deficits increase throughout the 90s, and increase rapidly in the first half of the 21st century (C. Fred Bergsten,Bates Gill, Nicholas R. Lardy, Derek J. Mitchell, 2006). At the beginning of 2008, America and China are each other’s second largest trading partner, while China has replaced Canada as the largest exporter to the United States. Today trade deficit with China is 28 times larger than it was during the Reagan era, according to new figures released by the U.S. Census Bureau.

The United States and China’s economic partnership has increased dramatically over the past years. Having a big population and a fast paced economy, China is a major market for the U.S. government. Thus, economic ties have stretched due to several issues, including China’s vast and expanding trade goods to the United States. China's fast transition to higher status, the U.S. and China merger has pushed the international relations into the spotlight of the world today. Due to its low rate of saving, the United States takes from outside sources to finance the federal budget deficit.