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Begin New Search Topic Government Political Geography China Content Type Policy Brief Publishing Institution Carnegie Endowment for International Peace

1. Corruption Threatens China's Future

Author:
Minxin Pei
Publication Date:
10-2007
Content Type:
Policy Brief
Institution:
Carnegie Endowment for International Peace
Abstract:
Corruption poses one of the most lethal threats to China's future economic development and political stability. Illicit activities such as bribery, kickbacks, theft, and misspending of public funds cost at least 3 percent of GDP. Corruption also undermines the legitimacy of the ruling Chinese Communist Party, fuels social unrest, contributes directly to the rise in socioeconomic inequality, and undermines China's environmental security. The prevalence of corruption in China is rooted in the country's partially reformed economy and absence of genuine political reform. Corruption in China has spillover effects beyond its borders. To protect its own interests and encourage China in its transition toward a more market-based economy and open society, the United States should rely on mutual legal cooperation to assist China in its struggle against corruption.
Topic:
Corruption and Government
Political Geography:
United States, China, and Asia

2. China's Currency: Not the Problem

Author:
Albert Keidel
Publication Date:
06-2005
Content Type:
Policy Brief
Institution:
Carnegie Endowment for International Peace
Abstract:
In Washington, politicians and pundits have settled on a single magical solution for the country's economic ills: getting China to revalue its currency, the RMB. By any reasonable economic measure, however, the RMB is not undervalued. China does have a trade surplus with the United States, but it has a trade deficit with the rest of the world. And China's accumulation of dollar reserves is not the result of trade surpluses, but of large investment inflows caused in part by speculators' betting that China will yield to U.S. pressure. Focusing on China's currency is a distraction. If the United States wants to improve its economy for the long haul, it had best look elsewhere beginning with raising the productivity of American workers.
Topic:
Economics and Government
Political Geography:
United States, China, America, Washington, and Asia