China into the Hu-wen Era: Policy Initiatives And Challenges - download pdf or read online

By John Wong, Lai Hongyi

ISBN-10: 9812567321

ISBN-13: 9789812567321

ISBN-10: 9812773940

ISBN-13: 9789812773944

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Sample text

Reforms of the bond market are also needed. The third area is regulatory reform. The Chinese have made strides by establishing three separate regulatory commissions for banking, securities and insurance and by consulting international advisory councils. However, the three Commissions need to collaborate more closely and address regulatory inconsistencies. China needs to upgrade staff skills, recruit able staff, and foster a climate in which their staff can challenge the institutions in their charge.

China's middle class appears to be considerable, yet still small in size. It accounted for only 14% of the population in 2001 or 47% of the urban residents in 2002. Upward social mobility also remains limited due to a prominent influence by one's residency and parents' background. Increasing income inequality and restricted social mobility combines to produce social polarities and generates popular propensities for protests or conflict, constituting the most daunting social challenges for Hu and Wen.

Overall, China would like to advance multilateralism not only in the economic but also security arenas. The other trouble spot is China-Japan relations which may continue to be strained by Japan's atonement of its past war crime and its close military alliance with the United States targeting at a rising China. China may continue to advance cooperation with ASEAN nations. The United States may stay out of the East Asian Community building. However, its influence will continue to be felt and it can balance China's influence in the region.

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China into the Hu-wen Era: Policy Initiatives And Challenges (Series on Contemporary China) by John Wong, Lai Hongyi

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