Chapter 7: China’s Economy During and After the Financial Crisis: 2007–2012

The following sections are included:

• Did China cause the 2007–2009 financial crisis?

  • The 2007–2009 financial crisis: The result of multiple factors

  • Did China cause the 2007–2009 financial crisis?

  • China’s increases in US securities holdings were modest in pre-crisis years

• Chinese and American financial leaders debated the cause of the crisis

• China responded so well that it may have benefited from the crisis

• The crisis unfolds and initially worsens China’s domestic growth slump

  • China during the financial crisis years, 2007–2009

  • Statistical system progress and ongoing shortcomings

• China’s stimulus response

  • Stimulus’ heavy reliance on local project borrowing

  • Reform of local government post-stimulus indebtedness

  • The real trade impact on China

  • RMB internationalization

• The offshore impact of the financial crisis on China

• Endnotes