Overview

Can the Chinese Party-state maintain high rates of economic growth going forward? Rapid economic growth requires an ever increasing quantum of finance capital. The source of new capital for Chinese firms was once exclusively the state but has now shifted to debt and equity securities sold in financial markets. In addition, financial restructuring and export promotion have provided a means for unleashing hidden sources of capital, including capital in hard currency. Hard currency capital has been particularly important in the acquisition by Chinese firms and other institutions of modern technology. Modernization is a key objective of the Party-state, as embodied in the Four Modernizations concept of Zhou Enlai. The primary focus of this book will be the institutional, market, and policy innovations in the financial sector that have provided for acceleration in the rate of growth of capital and modernization. It explores the connections between financial sector reforms and the various macroeconomic and ecological disequilibria that threaten to derail rapid growth, slow modernization, and potentially destabilize the Chinese economy and society.