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A Blueprint for Rebalancing the Chinese Economy

Author

Listed:
  • Nicholas R. Lardy

    (Peterson Institute for International Economics)

  • Nicholas Borst

    (Peterson Institute for International Economics)

Abstract

The task of economic rebalancing is likely to demand much of the new Xi Jinping–Li Keqiang administration's energy and attention. Rebalancing entails implementation of large changes to fundamental economic policies, such as removing lingering price controls and opening up the closed financial system. It will also bring about a shift away from the economic winners of the past decade, namely manufacturers and property developers, towards private consumers and the service sector. Despite these challenges, rebalancing can be achieved while sustaining moderately fast economic growth.

Suggested Citation

  • Nicholas R. Lardy & Nicholas Borst, 2013. "A Blueprint for Rebalancing the Chinese Economy," Policy Briefs PB13-2, Peterson Institute for International Economics.
    • Handle: RePEc:iie:pbrief:pb13-2
    as

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    File URL: https://www.piie.com/publications/policy-briefs/blueprint-rebalancing-chinese-economy
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    References listed on IDEAS

    as
    1. Mr. Il Houng Lee & Mr. Murtaza H Syed & Mr. Liu Xueyan, 2012. "Is China Over-Investing and Does it Matter?," IMF Working Papers 2012/277, International Monetary Fund.
    2. William R. Cline, 2013. "Estimates of Fundamental Equilibrium Exchange Rates, November 2013," Policy Briefs PB13-29, Peterson Institute for International Economics.
    3. Nicholas R. Lardy, 2008. "Financial Repression in China," Policy Briefs PB08-8, Peterson Institute for International Economics.
    4. Nicholas R. Lardy, 2012. "Sustaining China's Economic Growth after the Global Financial Crisis," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 6260, April.
    5. Tomoyuki Fukumoto & Ichiro Muto, 2012. "Rebalancing China's Economic Growth: Some Insights from Japan's Experience," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 20(1), pages 62-82, January.
    6. Mr. Francesco Grigoli & Alexander Herman & Klaus Schmidt-Hebbel, 2014. "World Saving," IMF Working Papers 2014/204, International Monetary Fund.
    7. Mr. Malhar S Nabar, 2011. "Targets, Interest Rates, and Household Saving in Urban China," IMF Working Papers 2011/223, International Monetary Fund.
    8. William R. Cline & John Williamson, 2012. "Updated Estimates of Fundamental Equilibrium Exchange Rates," Policy Briefs PB12-23, Peterson Institute for International Economics.
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    Cited by:

    1. Rui Mano & Jiayi Zhang, 2018. "China’s Rebalancing: Recent Progress, Prospects and Policies," IMF Working Papers 2018/243, International Monetary Fund.
    2. Ryan Rutkowski, 2015. "Service Sector Reform in China," Policy Briefs PB15-2, Peterson Institute for International Economics.
    3. Barry Eichengreen & Masahiro Kawai, 2014. "Issues for Renminbi Internationalization : An Overview," Finance Working Papers 23961, East Asian Bureau of Economic Research.
    4. Shahid Yusuf, 2014. "Middle East Transitions: A Long, Hard Road," IMF Working Papers 2014/135, International Monetary Fund.
    5. Marie Luise Funke & Helena Xiang Li & Horst Löchel, 2016. "The High Profitability of Big Chinese State-Owned Banks and China’s Growth Model," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 33(1), pages 121-134, August.

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