Document Type

Article

Publication Date

9-10-2012

Abstract

The globalisation of Chinese capital will be one of the hallmarks of 21st-century economics, shaping debates over state capitalism, ‘free’ markets and international institutions. China internationalised its product markets and upgraded its manufacturing prowess towards the end of the 20th century by allowing inward foreign direct investment (FDI) and by promoting export trade. This was supported in part by cheap labour, and resulted in growing trade surpluses with key trading partners—particularly the US. Outward FDI was discouraged in order to preserve foreign reserves, and together these policies have helped China accumulate significant amounts of capital, now making it a multi-trillion dollar reserve holder.

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Published in East Asia Forum Quarterly, September 10, 2012. http://www.eastasiaforum.org/2012/09/10/the-globalisation-of-chinese-capital/

Publication Title

East Asia Forum Quarterly

ISSN

1837-509X

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