Suchergebnisse

This contribution analyses the impact of the global financial crisis on the Chinese economy and the policies implemented by the Chinese government to cope with it. We argue, first, that China has not been able to decouple its economic performance from that of the U.S. and other developed countries. Second, although economic growth in the second quarter of 2009 showed that the stimulus package is working, the current development does not seem to be sustainable. In order to avoid another round of overheating, the government needs to adjust its stimulus policy. Third, the current crisis offers opportunities to conduct necessary structural adjustments in favour of more market-based and innovative industries, more investment by private companies and a stronger role of private consumption in economic growth. Fourth, with the external demand from the OECD countries declining, Chinese export companies need to further diversify their international markets and reorient their production and sales strategies to some extent towards the domestic market. Adapted from the source document.

Following the onset of the global financial crisis, with the weakening of investment activities of many companies in the U.S. and the E.U., Chinese companies took advantage of the opportunities the crisis and increased their presence abroad. China is no longer just as a production base and export hub of importance, but increasingly also as a source of foreign direct investment. The internationalization of Chinese enterprises is actively encouraged by the government. Contrary to the global trend of declining foreign investment in the global financial market crisis, Chinese foreign investment increased considerably in the years 2008 and 2009. Adapted from the source document.