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By Yang Jiang

Utilizing first-hand interview facts, Yang Jiang finds the major tendencies of China's alternate and fiscal politics after its WTO accession. specifically, she highlights the impact of competing family pursuits, govt organisations and varied principles on China's international monetary coverage.

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Extra info for China’s Policymaking for Regional Economic Cooperation

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Furthermore, China obtained Market Economy Status (MES) from ASEAN. It is worth noting that China did not demand that ASEAN recognise China as a market economy before they started formal FTA negotiations, unlike its subsequent practice of making this a precondition for starting negotiations. One reason was that the domestic law on anti-dumping measures, which was needed to make the MES applicable, was not in force in China until the end of 2002. More importantly, China did not think that ASEAN would use anti-dumping against China, because ASEAN countries were small.

This is due to China’s pursuit of the image of a responsible great power, its ascending economic power, and, importantly, the momentum that first- and second-track dialogues have created in East Asia. However, its financial system prevents China from supporting deeper forms of cooperation, such as exchange rate coordination and strong regional supervisory mechanisms. Third, the effectiveness of China’s economic diplomacy is affected by coordination problems between economic and political sections within the government.

FTAs would impose additional strains by requiring faster reduction of trade barriers. It is also questionable whether further exposing the weak Chinese banking sector to external financial fluctuations under regional financial arrangements would be welcomed by all. Second, economic liberalisation caused social and regional disparities in China, which was seen by many Chinese as the biggest threat to the regime’s legitimacy. That was reflected in the rising incidence of protests by peasants and laid-off workers and ethnic unrest, as well as widespread resentment among the citizenry over poor social welfare, corruption and inequality.

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