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on China |
| By: | Maria Teresa Punzi; Bihong Huang; Yu Wu |
| Abstract: | This paper assesses the financial risks arising from transition toward a low-emission economy. The environmental DSGE model shows tightening environmental regulation impairs firms’ balance sheets, and consequently threatens financial stability in the short term. The empirical analysis indicates that following the implmentation of Clean Air Action Plan, the default rates of high-polluting firms in a Chinese province rose by around 80 percent. Joint equity commercial banks with higher level of independence were able to appropriately price in their exposure to transition risks, while the Big Five commercial banks failed to factor in such risks. |
| Keywords: | E-DSGE Model, Financial stability, Clean Air Action Plan |
| Date: | 2021–09–03 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2021/228&r= |
| By: | Demary, Vera; Matthes, Jürgen |
| Abstract: | China is making great strides in regulating digitization. Some aspects are similar to European approaches, but Chinese laws on data security and protection go much further. This may result in a threat to European business models. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkkur:732021&r= |
| By: | Choi, Wonseok (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Yang, Pyeongseob (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Pak, Jinhee (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kim, Joohye (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Choi, Jiwon (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Zhao, Xinwang (China Manufacturing Think Thank Institute) |
| Abstract: | As China's recent industrial advancement has changed the trade structure between Korea and China from a complementary relationship to a more competitive one, the need for research on Chinese industrial policy has increased. Therefore, this study aims to analyze and evaluate changes in major industrial policies and industrial structures following China's reform and opening. We also analyze changes in the trade structure between Korea and China due to changes in China's industrial structure. Based on these analyses, we propose the following policy implications for Korea. Under the U.S.-China trade friction, China is expected to focus on a powerful science and technology strategy, promotion of the digital economy, "new infrastructure" construction, and the China Standard 2035 strategy. Korea needs to diversify its export market in the information and communication technology sector, prepare Korea's industrial technology protection system, and expand its participation in China's domestic market while diversifying global supply chains. Second, a response strategy is needed considering China's import growth rate in advanced manufacturing and to improve Korea's trade competitiveness. Finally, China's industrial policy is expected to evolve from simple incubation measures to a comprehensive strategy brought into harmony with the market, and further research on the creation of Chinese industrial ecosystems through policy and interaction between companies is expected. |
| Keywords: | China; Korea; opening; industrial; trade friction |
| Date: | 2021–04–19 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepwe:2021_024&r= |
| By: | Hyun, Sangbaek (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Na, Suyeob (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kim, Young Sun (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Cho, Koun (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Seo, Bongkyo (Dongduk Women’s University) |
| Abstract: | The opening of China's financial sector has progressed at a very slow pace, unlike the manufacturing and trade sectors that have pushed for an active opening to the outside world. The Chinese economy has been growing rapidly while serving as a global production base, but since 2012, it has become necessary to modify its approaches to achieve growth as it enters an era of medium-speed growth. Recently, new reform and opening measures have been taken in various fields to improve the quality of the Chinese economy, and the need for reform and opening in the financial sector has also increased. Internally, the financial system centered on China's state-owned commercial banks has focused on indirect financing, which has served as a major obstacle to upgrading China's economy and industry to the next level, further increasing the need for reform and opening of the financial sector. Moreover, externally, the U.S.-China conflict which began in earnest in 2018, is applying strong pressure toward reform and opening in China's financial sector. The Chinese government began to show a proactive attitude toward financial opening amid such internal needs and external pressure, and an important development was seen in China's financial opening when President Xi Jinping declared further opening measures at the Boao Forum in April 2018. The Chinese financial authorities have prepared follow-up measures related to financial opening, and the Chinese government's efforts toward financial opening in the three years from 2018 to 2020 yielded more results than the ten-year opening period since its accession to the WTO. Against this backdrop, this study examines the main contents of China's financial opening process, which has been accelerating recently, and derives evaluation and implications. |
| Keywords: | China; financial; opening; Chinese economy; conflict; Boao Forum |
| Date: | 2021–04–22 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepwe:2021_025&r= |