Supervisor(s): Chinese Academy of Social Sciences Sponsor(s): Institute of World Economics and Politics Chinese Academy of Social Sciences CN：11-3799/F
International Economic Review is supervised by Chinese Academy of Social Sciences, and sponsored by Institute of World Economics and Politics, Chinese Academy of Social Sciences. It is the only publication dedicated to publish academic reviews on the international economy in China. It aims to review the international economic and political activities based on China’s position from an academic perspective. Its scope covers international economic and political activities and development, particularly those with an emphasis on the international economic activities related to China. The journal is included in CSSCI.
The rapid accumulation of non-financial corporate debts in the emerging-market economies (EMEs) in the wake of the global financial crisis and their potential risks have aroused attention from and triggered concerns in the academic and policymaking circles. The rising concerns have come from, apart from the deteriorating macroeconomic fundamentals and corporate financial conditions of the EMEs, the expectation that the global financial conditions will turn from extraordinarily easy to tight. As the developed countries, such as the US, exit from their quantitative easing monetary policy, the rising global interest rates will put more debt repayment pressure on EMEs enterprises, especially those that have issued dollar-denominated debt. Although most of the EMEs enterprises currently may not face an imminent danger of falling into a debt crisis, given their deteriorating financial conditions, they have been pushed onto the brink of bankruptcy. In addition, the rising macro leverage ratio and deteriorating corporate financial conditions have served as a time bomb for economic growth and financial stability of the EMEs. Therefore, it is necessary to take a series of measures to help the non-financial enterprises in the EMEs cut their leverage levels while maintaining their economic and financial stability.
This paper drew on the historical lessons of three of the US’ yield curve-based monetary policy adjustments as well as Japan’s yield curve control policy from September 2016. Analysis of backgrounds, policy implementation processes and policy effects of those adjustments shows that the yield curve-based monetary policy faces many challenges. For instance, policies that suit times of war and crisis do not necessarily work in normal times. The fiscal dominance of monetary policy jeopardizes policy coordination and threatens the independence of central banks. Private firms may be squeezed out, and it will become more difficult for unconventional policies to gradually exit. The yield curve-based monetary policy can be used in times of crisis, but it does not fit China’s situation. The overnight market rate should be fixed as the new policy target rate of the price-based monetary policy, interest rate policymaking rules that fit China’s situation should be explored, and the smooth transition of the monetary framework should be promoted to achieve healthy economic and financial development.
Investment by Chinese enterprises in Africa has grown rapidly in recent years. This has aroused extensive attention from the international community. The article examines the business activities of Chinese enterprises and analyzes their role in the economic growth and structural transformation of African countries. We found that Chinese investment has been growing rapidly in increasing numbers of industries and countries in Africa, with private companies becoming the mainstays of investment in the continent. Chinese investment has raised capital stock, increased jobs and improved infrastructure in Africa, thus making important contributions to the host economies. At the same time, it has also produced some external effects in terms of market and environment in the host countries. Chinese enterprises have also promoted the technological development of host countries through technological spillover and propelled the development of related local enterprises, thus moving forward the integration of African countries into the world market. However, Chinese enterprises also face such constraints as low human capital, high production costs and volatility of government policies in the host countries. Therefore, the Chinese government should strengthen communication and cooperation with governments of the host countries, help African countries improve infrastructure and business environment, and provide policy support for Chinese enterprises. Meanwhile, Chinese enterprises should abide by international rules, promote technology transfer and labor training, build local industrial chains, and play a positive role in Africa’s industrialization and inclusive growth.
In history, why have the elites that had monopoly privileges and were protected by a set of economic and political institutions become willing to dismantle those institutions and give up their privileges? This article provides an explanation based on the analysis of the history of banking opening up in the early 19th century in Massachusetts. In regimes with closely interrelated political and economic privileges, political competition among elites leads to instability of bank charters and rent dissipation, forcing bank charters to be extended to all elites. Meanwhile, taxes on bank capital have led to the exemption of property tax of the elites and provided incentives for bank charters. When benefits of opening up bank access overweigh those of access limitation, the elites would become willing to agree to extend banking privileges to ordinary citizens.
Since China started its reform and opening-up forty years ago, it has been actively encouraging foreign enterprises to invest in the country so as to become a major destination for foreign direct investment. In recent years, with the transformation and upgrading of its economic structure, its business environment for foreign enterprises has also undergone structural changes. In its Special 301 Report, the United States criticized China of having failed to provide a sound environment to foreign investors. Based on the analysis of the motives of foreign investors in China, this paper evaluated business environment for the different types of foreign investors and used the attraction and potential indexes of business environment for foreign investors to study the general conditions of business environment for foreign investors. China is quite competitive in terms of overall business environment but it still needs to make improvement. Based on the evaluation results, this paper puts forward suggestions for improving the country’s business environment for foreign enterprises.
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OECD Guidelines on Corporate Governance of State-Owned Enterprises was first published in 2005 and revised in 2015. The revised version emphasizes national ownership, reaffirms the principles that the state as the owner of SOEs should follow, advocates fair market competition among SOEs and equal treatment of all shareholders to protect shareholder interests. Meanwhile, the SOEs should meet higher-level transparency and information disclosure requirements and the board of directors should shoulder their fiduciary responsibility. The Guidelines can serve as an important reference for China’s SOE reform in terms of corporate governance, transparency, accountability mechanism and the effective exercise of the state’s ownership.
Against the backdrop of intensifying global protectionism, a stable China-EU relationship serves as the precondition for the steady development of the Belt and Road Initiative in the Europe. When China and the EU meet in the Western Balkans, whether they will engage in regional competition or deepen cooperation will have a great bearing on the future evolution of their relationship. Based on analysis of the EU’s strategy in the Western Balkans and China’s Belt and Road projects in the same region, the paper argues that China’s investment and China-financed infrastructure projects play a positive role in pushing the Western Balkans to join the EU. Chinese funds and technologies not only promote the livelihood of the people in the region, but help integrate the regional transport and energy networks into the existing Trans-European Transport Network and Pan-European Corridors. In addition, there exists ample room for China and the EU to further their cooperation in terms of norms, standards, funding and planning.
China’s growing M&A has increased concerns of the US society. The reform of the CFIUS aims to address the failure of the existing review process in dealing with the “threat” of Chinese investment to US national security. The rationale of the CFIUS regulatory reform is consistent. Our analysis of the CFIUS reviews shows that the US Congress is seriously concerned about investment by Chinese enterprises. The latest CFIUS reform in 2018 increased factors to be considered in its national security reviews, widened the jurisdiction of the CFIUS, adjusted its review process, and expanded its regulatory authority. The article concludes that the latest CFIUS reform may mean that the investment environment for Chinese companies has become more unfavorable. It provides some policy recommendations for the Chinese government and enterprises in accordance with the new changes.
