'Re-balancing China' addresses three key sets of issues in
China's political economy. Part One of the text provides an
analysis of the profound impact of the global financial crisis on
China's economy - an economy deeply integrated in the global
economic system through trade and foreign investment. It also
examines the positive outcomes of the massive rescue package that
constituted China's policy response to the crisis. The rescue
package stimulated Chinese growth and helped to stabilize the
global economy as a whole.
Part Two focuses on the challenge of globalization for China's
industrial policy. Since the 1980s, China has pursued an industrial
policy aimed at nurturing a substantial group of globally
competitive firms, most of which have become superficially
successful. However, China still has a negligible number of large
firms that are competitive in global markets. China's experience
presents a fundamental challenge to traditional concepts of
industrial policy and development.
Finally, Part Three examines China's international relations,
the focal point of which is its relationship with the United
States. The US has made it clear that its principal challenge in
international relations is the 'rise of China' and has announced a
'tilt towards the Pacific' in its military strategy. As a result,
the core of this interaction spans the East and South China Seas
and the countries that surround this area.
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