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
- Interview: Martin Wolf on the Deep Roots of the Financial Crisis
- Foreign Affairs: The Making of a Mess: Who Broke Global Finance, and Who Should Pay for It?
- CGS Working Paper: China's $1.5 Trillion Bet: Understanding China's External Portfolio
- Peterson Working Paper: A (Lack of) Progress Report on China's Exchange Rate Policies (PDF)
The Immediate Impact
- Far Eastern Economic Review: How Low Will Asia Go?
- Backgrounder: Financial Crisis May Worsen Poverty in China, India
- Interview: Elizabeth Economy Says China's Economy 'Losing Steam Very Quickly'
- Transcript: Impact of the Global Financial Crisis on Developing Nations
- BBC: China's Exports See Sharp Decline
- World Bank: China Quarterly Update, March 2009
A New Economic Role
- Transcript: Immunity and Opportunity in Asia: Implications of the Financial Crisis
- Foreign Affairs: A Partnership of Equals: How Washington Should Respond to China's Economic Challenge
- Testimony: U.S. Trade Policy: The China Question
- Foreign Affairs: The Great Crash, 2008
- China Security: China: Creditor to the Rich
- Far Eastern Economic Review: Asia's Challenges For Obama
- Interview: Anne Marie Slaughter on Long-Term Implications of the Financial Crisis
- Brookings: China in a Turbulent Global Economic and Environmental Situation