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Issue Guide: China and the Global Financial Crisis

May 2009

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Some experts saw signs that China's economy might have been overheating even before the financial crisis erupted, and the crisis only exacerbated these concerns. China's leading stock indices declined rapidly beginning in late 2007, shedding well over half their value by the end of 2008. Despite Beijing's passage of an economic stimulus package valued at nearly $600 billion, the country's economy limped into 2009, showing rapid declines in economic growth and absolute declines in exports. In early 2009, Chinese year-on-year economic growth fell to 6.1 percent, well below the growth rates the country had averaged for most of the prior decade. Rising unemployment posed a separate concern for Beijing. Some experts guessed, however, that China might rebound economically before other major world economies, due in part to strong domestic demand. At international meetings, Beijing pressed to increase its standing as a global decision maker. Most economists agree that IMF voting rights, for instance, should be reweighted to make China's influence commensurate with its economic clout.

The following is a list of resources on the potential effect of the global financial crisis on China's economy.

The Birth of a Crisis

The Immediate Impact

A New Economic Role

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