[Biweekly Symposium] No.389: New International Financial Strategy of China against the Global Financ
Author:Unirule
Time：2010-04-15 14:13:18 Clicks:
Lecturer:Zhang Ming Discussants:Shi Jianhuai, Xie Taifeng, Zeng Gang, Hu Songming
In this summary report, Doctor Zhang Ming briefly summarized strikes posed on China by the global financial crisis.
First, the shrink in oversea demand attributed to subprime mortgage crisis will lead China to be engaged in the weakened export situation.
Second, the corresponding policy of the US government, including the aggressive fiscal policy and extremely loosen monetary policy, may potentially decrease the overall value of US debt market and depreciate the US dollars, and thus put China’s foreign exchange reserve at great risk.
Third, China’s counter-policy to tackle the short-term economic downturn has potential risk, which postpones the necessary restructure and thus harms the sustainable development of China’s economy.
After the summary, Zhang Ming focused extensively on China’s new “trinity” international financial strategy including the internationalization of RMB, the cross-region cooperation on monetary finance and the restructure of international monetary system. More elaborately, he summarized the restrictive factors on the internationalization of RMB, and the progress on the bilateral home currency exchange and cross-border trade settlements in RMB, reviewed the history of Northeast Asia regional cooperation and development of finance, and analyzed its status quo and China attitudes towards the issue. Furthermore, he made recommendation on the restructure of international monetary system and put forward justification on its future development.
Doctor Zhang Ming drew following three conclusions. First, from the preference of Chinese government, the strategies in three aspects have certain priority and the current emphasis should be on the internationalization of RMB.
Second, before the development of RMB went into the designated stage, no conflicts between the internationalization and regionalization of RMB will erupt, instead a harmonious state will dominate.
Third, the implementation of the international financial strategies should be based on the success of domestic restructure.
