September 2017
The Financial Labyrinth
Is China’s financial system going to collapse? The speed of credit growth, the proliferation of financial institutions and financial products, and the chaotic and fragmentary data about what’s going on, make it reasonable to fret that China is on the verge of a catastrophe like the one that sank the US in 2008. But close study has persuaded us that this is not so: the system remains securely funded by a huge pool of bank deposits, and the state competently controls enough of the main actors that the risk of nationwide implosion in the next few years is modest. In this issue, we attempt to bring clarity to this mystifying landscape.
Also in this issue:
- Yanmei Xie looks at the new wave of strategic, SOE-led investment heading overseas.
- Ian Johnson writes about why Xi Jinping’s embrace of some but not all religions could threaten social stability.
- Agatha Kratz says that CRRC is betting on America’s thirst for manufacturing investment to win over its urban rail market.
- Jonathan Landreth notes that after a few extravagant but unproductive US deals, Chinese investors are abandoning Hollywood.
- Matthew Forney reviews Wolf Warrior 2.