China’s Policymaking for Regional Economic Cooperation by Yang Jiang

By Yang Jiang

Utilizing first-hand interview facts, Yang Jiang finds the most important developments of China's alternate and monetary politics after its WTO accession. specifically, she highlights the effect of competing household pursuits, executive corporations and various rules on China's international monetary coverage.

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There is a similar lack of knowledge about China’s policymaking for financial regionalism. 64 However, there is little study on China’s policymaking for financial diplomacy, which may involve more state political and strategic considerations than the economic and social issues. Questions remain as to the motivations, preferences and constraints on China’s participation in financial regionalism, and whether China is willing to make domestic adjustments for regional initiatives, as it did for its membership of IMF and the World Bank.

Because of its limited cultivatable land and natural resources, overall China is not internationally competitive in land-intensive agricultural products such as sugar, rice and cattle farming. Since the commune system was replaced by the ‘family contract’ (bao gan dao hu) system in the early 1980s, Chinese agricultural production has mostly been organised on a small scale—in units of families. For a combination of factors in natural endowments and the organisation of production, many ASEAN tropical products are cheaper and better in quality than Chinese ones.

Domestic constraints First, problems in the domestic economy, not least inefficiency in stateowned enterprises (SOEs) and state banks and low productivity in labour-intensive industries, loomed large and had the potential to generate uncertainties or even a crisis for the domestic economy. For instance, China’s entry into the WTO posed immense challenges to domestic sectors like agriculture, chemical and pharmaceutical industries, heavy industries, the auto industry, information industries, telecommunications services and finance.

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