scholarly journals Trilemma Challenges for the People's Republic of China

2015 ◽  
Vol 32 (1) ◽  
pp. 49-89 ◽  
Author(s):  
Masahiro Kawai ◽  
Li-Gang Liu

This paper first reviews recent developments in exchange rate regimes, capital account liberalization, interest rate liberalization, and monetary policymaking in the People's Republic of China (PRC). It then observes that the PRC's monetary policy autonomy may have been reduced with falling capital control effectiveness and a rigid exchange regime that is still tightly managed against the United States (US) dollar. This hypothesis is investigated empirically using both the Taylor rule and a McCallum-like rule to test whether the PRC's money market interest rate and/or quantity of money supply are being increasingly influenced by the US interest rate or reserve accumulation. The paper concludes that there is considerable evidence suggesting diminishing monetary policy autonomy in the PRC. To regain policy autonomy, the monetary authority needs to substantially increase exchange rate flexibility of the renminbi as long as it continues to pursue capital account opening.

Author(s):  
Berry A. Harahap ◽  
Pakasa Bary ◽  
Linda N. Panjaitan ◽  
Redianto Satyanugroho

This chapter examines the impact of certain external shocks originating from the United States (US) and People’s Republic of China (PRC) on Indonesia as a small open economy. The spillover effects of tapering off, an interest rate hike, exchange rate devaluation, and real gross domestic product (GDP) are analysed. Two versions of the global vector autoregression model are employed, which covers 33 countries and considers both financial and trade relations among countries. The results suggest that the main risk for Indonesia’s real GDP is a shock to the PRC’s real GDP, while a US interest rate hike is the greatest risk to Indonesia’s exchange rate depreciation in the short term, especially compared to the US tapering off. Moreover, the dominant transmission channel of US monetary tightening is through finance, dampening economic growth in small open economies.


2012 ◽  
Vol 8 (1) ◽  
pp. 252-271
Author(s):  
Madoka Fukuda

AbstractThis article examines the substance and modification of the “One-China” principle, which the government of the People’s Republic of China (PRC) pursued in the mid 1960s. Under this principle, a country wishing to establish diplomatic relations with the PRC was required first to break off such relations with the Republic of China (ROC). In 1964 the PRC established diplomatic relations with France. This was its first ambassadorial exchange with a Western government. The PRC, in the negotiations over the establishment of diplomatic relations, attempted to achieve some consensus with France on the matter of “One-China”. The PRC, nevertheless, had to abandon these attempts, even though it demanded fewer conditions of France than of the United States (USA), Japan and other Western countries in the 1970s. The PRC had demanded adherence to the “One-China” principle since 1949. France, however, refused to accept this condition. Nevertheless, the PRC established diplomatic relations with France before the latter broke off relations with the ROC. Subsequently, the PRC abandoned the same condition in negotiations with the African governments of the Republic of Congo, Central Africa, Dahomey and Mauritania. After the negotiations with France, the PRC began to insist that the joint communiqué on the establishment of diplomatic relations should clearly state that “the Government of the People’s Republic of China is the sole legal government of China”. However, France refused to insert these words into the communiqué. Afterwards, the PRC nevertheless insisted on putting such a statement into the joint communiqués or exchanges of notes on the establishment of diplomatic relations with the African countries mentioned above. This was done in order to set precedents for making countries accede to the “One-China” principle. The “One-China” principle was, thus, gradually formed in the process of the negotiation and bargaining between the PRC and other governments.


1997 ◽  
Vol 91 (3) ◽  
pp. 493-517
Author(s):  
Marian Nash (Leich)

On March 3,1997, President William J. Clinton transmitted to the Senate for its advice and consent to ratification as a treaty the Agreement Between the Government of the United States of America and the Government of Hong Kong for the Surrender of Fugitive Offenders, signed at Hong Kong on December 20,1996. In his letter of transmittal, President Clinton pointed out that, upon its entry into force, the Agreement would “enhance cooperation between the law enforcement communities of the United States and Hong Kong, and … provide a framework and basic protections for extraditions after the reversion of Hong Kong to the sovereignty of the People’s Republic of China on July 1, 1997.” The President continued: Given the absence of an extradition treaty with the People’s Republic of China, this Treaty would provide the means to continue an extradition relationship with Hong Kong after reversion and avoid a gap in law enforcement. It will thereby make a significant contribution to international law enforcement efforts.The provisions of this Agreement follow generally the form and content of extradition treaties recently concluded by the United States. In addition, the Agreement contains several provisions specially designed in light of the particular status of Hong Kong. The Agreement’s basic protections for fugitives are also made expressly applicable to fugitives surrendered by the two parties before the new treaty enters into force.


2016 ◽  
Vol 51 (1) ◽  
pp. 78-106 ◽  
Author(s):  
GIOVANNI BERNARDINI

AbstractThis article focuses on the interplay between the political authorities and economic actors in the Federal Republic of Germany in the process of establishing relations with the People's Republic of China after 1949. Within this framework, the article will assess the role played by the Ost-Ausschuss der Deutschen Wirtschaft (Eastern Committee of German Economy), a semi-official organization recognized by the West German government. Both the ability of German economic actors and China's urgent need for economic contact with the West caused German-Chinese trade relations to circumvent the strict non-recognition policy followed by the West German government. The article also argues that, while economic relations heralded official recognition of the People's Republic of China by other Western European countries, in the case of the Federal Republic of Germany a division between the two spheres was finally accepted by the major actors involved, and ended only after the change of attitude imparted by the Nixon presidency in the United States during the early 1970s.


Napredak ◽  
2021 ◽  
Vol 2 (2) ◽  
pp. 77-102
Author(s):  
Žarko Obradović

The Chinese state has existed for more than five thousand years and in the history of human society it has always presented its own specific civilizational attainment, which exerted a considerable influence on the Asian region. In the years since its creation on October 1, 1949, and especially in the last decade, New China has stepped out beyond the region of Asia onto the global scene. With its economic power and international development projects (amongst which the Belt and Road projects stands out), China has become a leader of development and the promoter of the idea of international cooperation in the interests of peace and security in the world and the protection of the future of mankind. This paper will attempt to delineate the elements of the development of the People's Republic of China in the 21st century, placing a special focus on the realization of the Belt and Road initiative and the results of the struggle against the Covid-19 pandemic, all of which have made China an essential factor in the power relations between great global forces and the resultant change of attitude of the United States of America and the European Union towards China. Namely, China has always been a large country in terms of the size of its territory and population, but it is in the 21st century that the PR of China has become a strong state with the status of a global power. Such results in the organization of society and the state, the promotion of new development ideas and the achievement of set goals, would not have been possible without the Communist Party of China, as the main ideological, integrative and organizational factor within Chinese society. In its activities, the Chinese state sublimates the experiences of China's past with an understanding of the present moment in the international community and the need of Chinese citizens to improve the quality of life and to ensure stable development of the country. The United States and the European Union are taking various measures to oppose the strengthening of the People's Republic of China. These include looking after their interests and preserving their position in the international community, while simultaneously trying, if possible, to avoid jeopardizing their economic cooperation with China.


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