DIIS seminar: Står Kina overfor en finansiel krise?

TID: Torsdag den 13. februar kl. 15-17

STED: Danish Institute for International Studies, Main Auditorium, Gammel Kalkbrænderi Vej 51A, Reception, 2100 København Ø.

There seems to be something that needs to be done about the Chinese financial system, with the reappearance of substantial debt after 2008 refocussing attention on the sustainability of the existing financial “model”.

TID: Torsdag den 13. februar kl. 15-17

STED: Danish Institute for International Studies, Main Auditorium, Gammel Kalkbrænderi Vej 51A, Reception, 2100 København Ø.

There seems to be something that needs to be done about the Chinese financial system, with the reappearance of substantial debt after 2008 refocussing attention on the sustainability of the existing financial “model”.

It’s not just that “traditional” forms of bank centred debt has re-emerged, but that the informal “shadow banking” sector also seems to be increasingly fragile, generating debts that do not seem easy to repay.

Explanations for the current situation tend to focus on the way in which China responded to the global financial crisis, and the incentives that exist to go outside the formal and more regulated banking system into often more riskier activities.

But in addition to these short term events, there are more fundamental structural issues that have their origins in policy areas that have been at the heart of political debates for many years.

On one level, we have to consider the type of capitalism that is being constructed in China, and the relationship between the state and the (quasi)market. As the current financial system has evolved from the old (state planned) one, it contains within it some of the DNA of its predecessor.

On another level, the spatial distribution of power and authority is inextricably linked to the way the financial system functions.

So while it is often argued that the incremental and experimental nature of economic reform has been a key explanation for China’s economic successes, the argument here is that while it might be possible to tinker with some elements of current financial problems, the relationship between local government financing, land, the banking system and key economic sectors make it difficult to resolve more structural issues without taking a holistic approach; a holistic approach that would have fundamental consequences for the nature of the Chinese state, and the distribution of power within it.

About the book:

In China’s Policymaking for Regional Economic Cooperation (Palgrave Macmillan, 2013), Yang Jiang opens the black box of China’s trade and financial policymaking after its WTO entry in 2001.

Using first-hand interview data, she sheds light on the influence of competing domestic interests, government agencies, local governments and different ideas on China’s foreign economic policy. She also provides interesting comparisons between China and other countries in international negotiations.

Speakers:

* Yang Jiang, Senior Researcher, DIIS
* Shaun Breslin, Professor, University of Warwick

The seminar will be held in English.

Participation is free of charge, but registration is required. Please the online registration form no later than Wednesday, 12 February 2014 at 12.00 noon.

Please await confirmation by e-mail from DIIS for participation.

Read more and register at: http://en.diis.dk/home/seminars/2014/is+china+facing+a+financial+crisis