Author: William H. Overholt, Harvard

Germany and Japan didn’t want their currencies to go global, fearing appreciation and the resulting blow to their manufacturers’ competitive edge. China, in contrast, seeks to turn the renminbi (RMB) into a major global currency. Read more…

Author: Stephen Olson, Hinrich Foundation

The verdict on China’s recent currency devaluations differs depending on who you listen to. To some, the devaluations are either a positive and responsible step in the direction of a more market-determined exchange rate and a liberalised financial system. To others, they are potentially destructive, beggar-thy-neighbour competitive devaluations intended to prop up declining GDP growth by unfairly boosting exports. Read more…

Author: Jeffrey Frankel, Harvard University

America’s two political parties rarely agree, but one thing that unites them is their anger about ‘currency manipulation’, especially by China. Perhaps spurred by the recent appreciation of the dollar and the first signs that it is eroding net exports, congressional Democrats and Republicans are once again considering legislation to counter what they view as unfair currency undervaluation. Read more…

Author: Peter Drysdale, Editor, East Asia Forum

China’s approach to economic reform is commonly characterised by Deng Xiaoping’s metaphor of ‘crossing the river by feeling the stones’. This is the experimental approach to economic and social reform. It is typified by the successful implementation of the household responsibility system that saw the transformation of Chinese agriculture and the early liberalisation of trade and investment through the establishment of Special Economic Zones together with economic experimentation in Guangzhou. Read more…

Author: Yu Yongding, CASS

When renminbi internationalisation was making rapid progress in 2011, some leading investment banks predicted that by the end of 2012 Hong Kong’s offshore RMB deposits would reach more than 1 trillion yuan, cross-border RMB trade settlement would surpass 3.7 trillion yuan, and RMB-denominated bonds and loans would grow to 700 billion yuan. These predictions were way off the mark. However, on the other hand, RMB trade settlement has maintained its growth momentum: Read more…

Author: Andrew Sheng, Fung Global Institute

The Asian century is a foregone conclusion, but no-one has clarified whether it will be good or bad for Asia.

The region has 60 per cent of the world’s population and, according to Asian Development Bank estimates, will probably be responsible for half of global GDP and financial assets by 2050. Asia is too big to ignore and too diverse to be able to predict how it will shape this century. Read more…

Author: Liu Dongmin, IWEP

After becoming the new Chinese leader, Xi Jinping chose Shenzhen as his first visit outside Beijing and made the Qianhai special economic zone his first stop in Shenzhen. This was a clear signal of Qianhai’s position at the forefront of further reform and opening in China. Read more…