Abstract
This chapter provides an introduction to the topic of the book that seeks to characterize and evaluate China’s financial power potential. It does so by analyzing the relationship between domestic financial repression and international financial power in the context of the political economy of the developmental state. On the basis of a novel theoretical framework for the analysis of the financial power potential of developmental states, it provides an in-depth analysis of China’s approach to currency internationalization, its creditor status and its policies towards the Bretton Woods institutions while contrasting the country’s present role in global finance with the position of the Japanese developmental state in the 1980s and 1990s.
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- 1.
For analyses of China’s growing foreign exchange reserves and its creditor status see Ma and Zhou (2009), Zhang and He (2009), Wang (2007b), Fung et al. (2007). For analyses of the internationalization of the renminbi see McCauley (2011), Yu and Gao (2011), Subacchi (2010), Dobson and Masson (2009), Murphy and Yuan (2009).
- 2.
Notable exceptions to this rule have been studies by Gregory Chin and Eric Helleiner (2008) and Daniel Drezner (2009). The former has inspired this work both in terms of its approach to the subject of China’s financial power via a comparison with the case of Japan and the application of Susan Strange’s (1988) differentiation between structural and relational power.
- 3.
See for example the collection of essays in Andrews (2006a).
- 4.
All quotations from Chinese sources have been translated by the author.
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Heep, S. (2014). Introduction. In: China in Global Finance. Global Power Shift. Springer, Cham. https://doi.org/10.1007/978-3-319-02466-0_1
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DOI: https://doi.org/10.1007/978-3-319-02466-0_1
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