Currently, China is the world’s second largest economy, and accounts for an ever-larger share of total global growth. China is in the process of liberalizing both its internal financial markets and capital movements as well as trying to reduce the share of fixed capital investment in the total demand. Both processes are consistent with a lower growth rate of GDP. Liberalization of the financial system is envisaged to make financial intermediation more efficient and also help in transforming inefficient state-owned enterprises that currently enjoy preferential access to finance. Rebalancing of the economy towards private consumption and away from investment would increase welfare of the ordinary Chinese and avoid a build-up of excess capacity in many sectors.

Venue: Asia House, Mandarin Room, 1st floor, Indiakaj 16, 2100 Copenhagen Ø

Speaker: Iikka Korhonen, Director, Institute for Economies in Transition, Bank of Finland

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