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By Susan L. Shirk

"Once a sound asleep great, China this present day is the world's quickest growing to be financial system -- the prime producer of mobile phones, computer desktops, and electronic cameras -- a dramatic turn-around that alarms many Westerners. yet In China: Fragile Superpower, Susan L. Shirk opens up the black field of chinese language politics and reveals that the true hazard lies now not in China's brilliant development, yet within the deep lack of confidence of its leaders. Read more...

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Extra info for China : fragile superpower

Sample text

China Needs the World China’s economic miracle has turned it into an economic super power in record time. Because its economy is enmeshed in a dense web of international production chains and financial flows, the Chinese government by and large tries to maintain good relations with its economic partners. Rapid growth under authoritarian conditions has produced a slew of daunting domestic problems. The government seeks to avoid any international conflicts that could throw its economy off course and threaten Communist Party rule.

And as its factories move up the ladder from labor-intensive toys and shoes to technologyintensive computers and automobiles, China and the United States are starting to view one another warily as competitors. But the two economies also are deeply interconnected and interdependent. Economic ties are no guarantee that nations won’t fight—for one thing, trade can introduce new bones of contention—but they do give them a stake in trying to resolve their differences peacefully. Inside China, market reforms and rapid growth have bought the communist regime time.

S. S. support for China’s economic development are crucial for sustaining China’s growth and the Communist Party’s political survival. American political reactions, however, are just one of the several huge risks looming over China’s future. Bank Insolvency China’s shaky banking system is often singled out as the country’s biggest economic risk. The balance sheets of Chinese banks are weighed down by massive amounts of “nonperforming loans” that the bank will never collect because the enterprise that borrowed the money—typically a stateowned factory with good political connections—makes no profits or has gone out of business.

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