Chapter 11: Foreign Finance and Trade

One can better understand China’s trade and foreign financing situation in its historical dynamic context. Beginning in the 1980s, China’s surge in for-profit incentive reforms, technology adaptation, capital investment, and skills dramatically raised its per-person productivity. This rise in productivity posed an unavoidable challenge to the already-developed world. To meet this challenge, the developed world would have had to raise productivity for its own relevant workers. It was a challenge not every member of the developed world was ultimately able to meet…