China - Book Review
My book was titled "China Competing in the Global Economy." I found this book somewhat hard to read because it was filled with lots of graphs, jargon, and mathematical equations. But, none-the-less it did talk about some very relevant issues.
The first portion of the book discussed the rapid growth that China has had over the past couple of decades. We have all seen it, so this shouldn't come as a surprise. The book states that the growth should continue, however, at a slower pace, leveling off at around 7 percent per year. Using many graphical and mathematical representations, the book insists that with this growth the provinces will converge to a middle ground when it comes to wealth. Right now the wealth is not balanced, but progress is being made. The book then goes into the macroeconomic viability of China and talks about the “State-owned enterprises” and banks, discussing the vulnerability of China in these areas and the need for policies to manage the vulnerability going forward. The banks are very weak and unable to sustain themselves. This weakness in finance could cause major problems, so China is looking to reform to help control it. Lastly, the book talks about the global environment and exchange rate flexibility in China. It discusses foreign direct investment and a market economy and how the exchange rate needs to be more flexible to move China into the global economy. China is spuring development and looking forward to merging successfully into the global economy.