State Domination and Financial Markets The Chinese government has characterized its involvement in economic development as "serving rather than supervising the private economy" since 2008 (Xinhua, 2009). With this shift in focus a number of changes to Chinese management can be expected. The paternalistic approach will remain, as it is part of Chinese culture, but there will be further Western influences, particularly with respect to the desire outcomes of management behavior. In

As long as the government will be able to tackle these concerns and retain a sustainable development of the economy, it is likely that China will become one of the most prosperous countries in the world. However, the authorities will need to watch for popular discontent following income inequality. Bibliography Qian Yingyi; the Process of China's Market Transition (1978-98): The Evolutionary, Historical, and Comparative Perspectives. Stanford University. April 1999. On the

China's Economy During and After the Economic Crisis All of these factors created major growth for China for the three decades following the beginnings of its economic reforms, and then the financial crisis hit. China began the twenty-first century with a growth rate of 8.4% in 2000, peaking in 2007 with a 13% growth rate (IMF 2010). In 2008, this rate fell to 9.6% -- a significant drop, but still a

China's currency policy may make that country the main country with whom the U.S. has a current account deficit, but if not for China the U.S. would have the same problems, just with another country for the protectionists to scapegoat. 3) I think an aggressive legislative posture is the best approach to take with regards to China's currency position. Ultimately, China is an economic actor the same as any other.

Most economists feel that if China's currency were allowed to trade freely, it would be a whole lot more. No one can know for sure how much more, but leading economists put it in a range of 10 to 40% higher value than it is now (Davidson 2006), By keeping the Yuan artificially low in value, China is effectively giving the U.S. consumer a discount on all Chinese exports. By

In addition the continued decline of the fiscal account will affect both debt sustainability and external balances ("Monetary Policy Decision"). As it pertains to medium term fiscal sustainability which must be present to achieve necessary overall macroeconomic stability, the tax-GDP ratio must be increased ("Monetary Policy Decision"). Additionally government expenditures must decrease ("Monetary Policy Decision"). The article also reports that the revenue deficit, which represents the difference between total revenues