The Asian financial crisis and financial reforms in China

Abstract

Although China has avoided the direct attack of the Asian financial crisis, it has suffered secondary consequences leading to an economic slowdown. More importantly, the plight of its neighboring countries has driven home the urgency of financial reforms as China shares many of the problems at the root of the crisis in Thailand, Indonesia, Malaysia, and Korea. This article reviews the reform measures adopted by the Chinese government since the crisis. It analyzes the political dynamics of financial reforms in terms of state preferences and state capacities. In retrospect, the Asian financial crisis may well be seen as a turning point in reforming China's financial system.

Manufacturing Foreign Direct Investment, Asian Crisis, Regulation and Institutions

“…Such initial assertions certainly concur with the majority of subsequent, more detailed analyses that have broadly alluded to the vital importance of post-Asian crisis reform in financial and other areas for the sustainable recovery and longerrun development of the region (Aggarwal 1999;Bello 1999;Bustelo 1998;Ciuriak 1999;Chang, Park and Yoo 1998;Goldstein 1998;Hamann and Schultz-Ghattas 1999;Hutson and Kearney 1999;Laurence 1999;MacDonald 1998;Makin 1999;Mathews 1998;Passell 1998;Pincus and Ramli 1998;Simandjuntak 1999;Walker 1998). The need for reform has applied not just to the most seriously crisis-affected countries in the Asia-Pacific, but to those, such as China and Hong Kong, that vicariously experienced the crisis and were partially insulated by non-convertible or formally dollar-linked currencies (Faison 1998;Lardy 1998;Wang 1999).…”

Impact of the 2007–09 global economic crisis on human resource management among Chinese export-oriented enterprises

“…Hence, the findings of Ding et al differ from those of other researchers on the subject. This finding, on one hand, can be explained by the fact that China was able to avoid the direct onslaught of the 1997 Asian financial crisis (Wang 1999). On the other hand, due to the small size and sole economic ownership of the sample, the findings of Ding et al's study may not be generally applicable to all Chinese firms.…”

The Dialectics of China’s Foreign Aid: Interactions Shaping China’s Aid Policy

“…Glosny (2006) argues that this policy decision prevented the financial crisis in neighboring countries spreading to China. However, Wang (1999) insists that refusal to devalue the RMB in fact caused tremendous difficulties for Chinese companies engaged in export as they faced stiffer competition from their peers in neighboring. The Chinese government presented the policy decision as an example of China's responsibility and selflessness (Glosny 2006).…”