The remarkable rise of China over the past three decades has been unprecedented in both its scale and speed. Analysts around the world have attempted to understand the causes of this unique event and to predict how long it will last.

China's rise has also raised two important questions. The first concerns the stability and the sustainability of China’s growth, which has been accompanied by growing internal and external imbalances, rising inequality at home, environmental degradation and an increased risk of catastrophic climate change, and has happened in spite of the continuing, if diminished, role of the state in many sectors of the economy. The second concerns trying to guess what the effect of China’s rise will be on its relations with the rest of the region, the world and the existing global order. It seems only a matter of time until China becomes the world’s largest economy, and history suggests that it is unthinkable that this event would be without geopolitical consequences.

The chapters in this volume draw on papers originally presented to the 34th Pacific Trade and Development Conference held in Beijing in 2010 to discuss these two big questions and China’s changing role in the world economy. This book will be welcomed by students and scholars of Chinese economics, business and politics, and those interested in the pervasive impact of China’s development on the global economy.

chapter 1|17 pages


ByYiping Huang

chapter 2|25 pages

China's rapid growth and development

A historical and international context
ByLigang Song

chapter 3|23 pages

Double transition and China's export-led growth1

ByYang Yao

chapter 4|20 pages

Understanding changing trends in Chinese wages

ByCai Fang, Wang Meiyan, Du Yang

chapter 5|33 pages

Climate change mitigation

A defining challenge for China
ByStephen Howes

chapter 6|21 pages

Financial reform and economic development in China

ByYiping Huang, Xun Wang

chapter 7|17 pages

Capital account liberalization and the role of the renminbi

ByNicholas Lardy, Patrick Douglass

chapter 8|41 pages

Chinese trade policy after ten years in the World Trade Organization

A post-crisis stocktake
ByRazeen Sally

chapter 9|32 pages

Issues and options for social security reform in China

ByLi Shi

chapter 10|22 pages

Chinese outward direct investment

Is there a China model?1
ByYiping Huang, Bijun Wang

chapter 11|30 pages

History matters

China and global governance
ByWendy Dobson