Reforming the Financial Industry The Eighteenth Party Congress’ Third Plenary Session’s Decision of November 2013 lists a new round of financial reforms aimed at introducing more market forces into the economic system. Two of the most important facets of this…
China’s Currency Reforms from a Banker’s Perspective: A Conversation with Henry Yu, Managing Director of Fifth Third Bank, Atlanta, Georgia.
Introduction
As China’s economy moves ever closer to surpassing the U.S. in terms of purchasing power GDP, China’s currency system seems incompatible with its global economic status. China’s new leadership led by President Xi Jinping is pushing to modernize and marketize the currency system along with necessary concurrent reforms. The 2008 financial crisis was a wake-up call for many countries, demonstrating the heavy dependence of the global economy on the U.S. dollar. The vulnerability of the U.S. economy became everyone’s challenge. Reform of the Renminbi (RMB) became a priority in order to establish the Chinese currency as a global player and lessen China’s reliance on the U.S. dollar. Aside from the fallout from the financial crisis, the sheer size of China’s cross-border trade is creating demand for far more depth and flexibility in the currency markets.
The rhetoric about China’s faults vis-à-vis the challenges facing the U.S. continues to escalate. During the presidential campaign, Barack Obama chose to lead the attack, blaming China for some portion of our woeful economic situation. Mitt Romney retorted that Obama’s…
An Interview with Scott Ellyson, East West Manufacturing, Inc. Ten years ago, Scott Ellyson and Jeff Sweeney co-founded East West Manufacturing (www.ewmfg.com) in Atlanta to bring U.S.-based companies both the cost-savings and speed-to-market offered by Asian manufacturing, along with the…
By Tom Evans, CNN, November 3, 2009 2:38 p.m. EST
China is both a partner and a rival depending on the venue and issue. Both the U.S. and China have benefited from their economic interactions via trade and investment–probably China has benefited more simply because they were basically closed when they started this process.
China saves, the U.S. consumes-or so the headlines say. Many analysts (including this author) have written about China’s high savings rates and therefore low consumption, which reinforces China’s dependence on exports for its growth.
As China celebrates 30 years since the starting point of Deng Xiaoping’s economic and political reforms, the Southern Center for International Studies and the China Research Center held a joint program to review China’s economic situation and future projects. The…
In recent years, but especially since the 1990s, the U.S. and China have become increasingly economically interdependent. For most of that time, both economies have been doing well, and for much of it, growing at historic highs for both. Today,…
On 27 February 2007, Chinese equity markets fell almost 9%. Hours later other global markets plunged far and fast, including those in Europe and the U.S. Such a link between China’s equity markets and others was unprecedented. Analysis conducted in…