US Financial Crisis: The Chinese Connection
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Code : ECC0012
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Region : US |
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Abstract: Well, what not one can do with a trillion dollars? Ask China. Accumulating massive foreign exchange reserves through exports, China gained the power to challenge US' economic supremacy. China not only fed the US financial institutions' with much needed dollars that expanded the bubble, but also contemplated on bailing the US out of the crisis. Analysts and experts called upon China to redefine the global economic balance by using its foreign exchange reserves to gain pre-eminence on US instead of bailing it out. Others, however, believe that China lacks the expertise to challenge US. The case study describes the impact of 2008 financial crisis on US and China. The case study highlights these issues and presents the dilemma concerning China's future course of action. Should China attempt to challenge US and thereby become a key player in the world economy? Or should it bailout US and save its own economic growth? |
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Pedagogical Objectives:
Keywords : Subprime, Mortgage, Financial Crisis, China, FDI, Yuan, Renminbi, US Trade deficit, Foreign Exchange Reserves, Bail-out, US-China Trade relations
Contents :
» China and the US: The Economic Tango
» Financial Crisis and US' Search for Aid
» China's Economic Supremacy over US?
