Time for China to let go of the dollar

Zhou Xiaochuan, Governor of the People's Bank of China (PBoC), at a press conference during the third Session of the 12th NPC (National People's Congress) in Beijing, 12 March 2015. Zhou Xiaochuan said on Thursday 12 March 2015 that China is sticking to the prudent monetary policy despite the use of a string of new monetary policy tools. (Photo: AAP).

Author: Peter Drysdale, East Asia Forum

China’s Third Plenum reforms, introduced under the leadership of President Xi Jinping and Premier Li Keqiang in November 2013, promised deep market-based reform in the economy, including reform of financial markets and liberalisation of the capital account of international payments. Read more…

Time to unpeg the renminbi

Pedestrians walk past the head office of the People's Bank of China (PBoC), China's central bank, in Beijing. (Photo: AAP).

Author: Guonan Ma, Bruegel

The Chinese economy is simply too big to remain tied to the once useful monetary anchor of the renminbi–US dollar peg. It is time to let it go.

The Chinese renminbi depreciated 2.5 per cent against the US dollar in 2014. It was the largest annual fall since 2005, when Beijing timidly started loosening its tight dollar peg. Read more…

China needs to get the integration ball moving

Residents visit a street market in Gujiao in northern China's Shanxi province. From coal country to the export-driven manufacturing heartland of China’s southeast, millions of people are enduring wrenching economic change. (Photo: AAP).

Author: Jan Fidrmuc, Brunel University

Despite China’s history of experimenting with new policies and the economic liberalisation since the late 1980s, China is still only a partially integrated economy. This has caused regional divergence and inequality. Read more…

Using connections brings instant gain but long-term pain for China’s stocks

The Pudong financial district in Shanghai, China. Firms with political connections are more likely to be approved for IPOs by the China Securities Regulatory Commission. (Photo: Joan Campderrós-i-Canas, flickr).

Authors: Li Guoping and Zhou Hong, CUFE

Political connections are invaluable to industries or individual enterprises in China. But while they may bring regulatory benefits to private-owned enterprises during the state-controlled process of going public, they may also lead to China’s stock markets performing poorly. Read more…

Competition the true marker of Xi Jinping’s economic reforms

Men work on a construction site in Beijing. Xi’s economic reform program has focused on increasing competition not privatisation. (Photo: Ding Zhou, flickr).

Author: James Laurenceson, UTS

The usual assessment of Xi Jinping’s performance as China’s leader goes like this: since taking the reins at the end of 2012 he’s over-delivered on anticorruption and underwhelmed on economic reform. Read more…

Banking on America’s Asian choices

US President Barack Obama boards Air Force One after a trip to Asia in late 2014. (Photo: AAP).

Author: Peter Drysdale, East Asia Forum

The US–China relationship is undoubtedly the single most important bilateral relationship in the world today. More hinges on the successful management of that relationship, not only for Asian but also for global peace and prosperity, than on any other single relationship in the world. Read more…

The US must adapt to Asia’s new order

Chinese President Xi Jinping and US President Barack Obama in 2014. (Photo: AAP).

Author: Evan A. Feigenbaum, Paulson Institute

The United States has dominated global economics and finance in the post-war era. But the rise of new regional institutions and agreements in Asia will pose a growing and lasting competitive challenge to US leadership in the Pacific. Read more…