Reforms of China’s Banking System
نویسندگان
چکیده
China’s rapid economic growth over the past three decades has positioned it as one of the major economic powers in the world today. Its real gross domestic product (GDP) has grown at an average rate of 9.9% over this period, which is almost three times the world average. As of mid-2010, China had surpassed Japan to become the second largest economy in the world, behind only the United States. This remarkable growth can be traced to Deng Xiaoping, who initiated China’s transition from a centrally planned economy to a socialist marketoriented economy beginning in 1978. The main driver in China’s rapid economic growth in recent years has been investment. It has been funded primarily with the retained earnings of firms and loans from banks, with the issuance of stocks and bonds having played a relatively minor role, though one that has become more important recently for a growing number of firms. Despite its substantial contribution to growth, there were concerns that so much investment in the past few years was contributing to excess capacity in some sectors of the economy. These concerns diminished somewhat as a result of the global recession that began in the summer of 2008. Indeed, the Chinese government put into place a $584 billion stimulus package to prevent the growth of the economy from slowing too much due to a decline in net exports. This action did keep the economy growing at a fairly rapid pace, but led to an increase in the projected budget deficit to approximately 3% of GDP in 2009. However, a deficit of this size is quite manageable and far smaller than those in other major countries. Furthermore, there are some concerns that the stimulus package also contributed to an increase in real estate construction that may lead to future problems to
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