China and the Credit Crisis

A timely book about the emergence of a new world order in the wake of the credit crisis. Since marrying a Chinese economist working at the World Bank, the author has spent the last 20 years with close associations in China, and is a visiting professor at the Peking Business School. Much of the focus for the origins of the credit crisis has been in the US, but the author shows how China contributed to this meltdown through its economic emergence, giving a ' strong supply shock to the world economy', which in turn helped 'create the conditions for excessive debt' (China and Japan hold over 50% of U.S. Treasury debt between them). Within China itself, the crisis led to a collapse of demand in its exports, ultimately leading to an increase of self-generating economic activity. The crisis has in turn accelerated the global shift in power and influence towards Asia, a fact well recognised by the United States. This well-informed and trenchant analysis ranges over the central historical, economic and political issues faced by the world as a whole, relating this to potential internal developments within the country itself. It is worth reminding ourselves that the Chinese now have further reasons to regard themselves as superior to the Americans and Europeans, and that this new political and economic landscape will not be reversed. Essential reading for those who would like a deeper understanding of the role of China in our time.