China in the Global Economy

Amiya Kumar Bagchi and Anthony P. D’Costa

in Transformation and Development

Published in print November 2012 | ISBN: 9780198082286
Published online January 2013 | e-ISBN: 9780199082377 | DOI:
China in the Global Economy

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China has become closely integrated with the outside world, not only with its huge exports and foreign direct investment (FDI) inflows but also in terms of short-term capital flows. The first two contribute to output and employment, while generating foreign exchange, raising the country's official reserve stocks to nearly US$ 2 trillion. This chapter analyses China's deep integration with the world economy and the systemic risks associated with such integration. It begins with a brief discussion of China's trade patterns, followed by a more in-depth discussion of China's financial integration. It also shows that FDI has been instrumental in providing a major share of exports and gross domestic capital formation, apart from providing employment.

Keywords: world economy; Chinese economic integration; Chinese FDI; Chinese short-term capital flows; Systemic risks; Chinese trade patterns; Chinese exports; domestic capital formation; Chinese gross domestic capital formation

Chapter.  6486 words.  Illustrated.

Subjects: Comparative Politics

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