CONCLUSION

China to not only relocate excess manufacturing capacity, but also to ‘win understanding and support from the relevant countries on issues such as environmental sustainability and human rights’ and this would also help break the ‘encirclement’ of the advance economies.Withmoremoderation, Yi Gang (2008), current PBOC deputy governor (and adjunct professor at Peking University), reassures American observers by suggesting that the primary logic behind China’s financial opening and outward financial expansion is ‘simply’ to facilitate China’s financial sector reforms-it is not about expansive hegemonic ambitions. Aware of the geopolitical sensitivities entailed in China’s financial rise,

Li Wei suggests that we can expect that the economic diplomacy and motivations behind outward Chinese investment will be a key area of research for Chinese IPE in the future.22 Wang Yong, a leading force in Chinese IPE for two decades now, notes that Chinese IPE scholars are paying a lot of attention to examining the core negotiations of the US-China Strategic and Economic Dialogue (S&ED).23 Peking University’s School of International Studies is said to have numerous lines of Track Two cooperation with US institutions. The comparative political economist, Fu Jun (2009), who is also executive dean of the School of Government at Peking University, has analysed how financial regulations and international coordination among states lagged far behind international capital flows, and he suggests that the recent financial crisis exposed the serious flaws of a global financial coordination scenario that is too reliant on the US financial sector and American leadership. Fu suggests that more research is needed in the future on how, in the wake of the global crisis, the key countries are making some efforts to improve their macroeconomic coordination and have collaborated to strengthen financial stability, but he also says that more robust financial regulation is still needed as is striving for greater international balance in the management of the system. Meanwhile, Ba Shusong, Li Ke and Shen Lancheng of the DRC (2010) are researching the creation of new international regulations for sovereign wealth funds. Their research illustrates that national political motivations are almost always behind sovereign wealth funds and they argue that the international community needs to face up to this reality. Ba, Li and Shen suggest that the key states should work on formulating shared regulations for this segment of global finance, and they are researching the types of international political-economic norms, rules and standards that are needed to provide transparency and anti-protectionism in this growing subsector of international finance.