senior economist at the Nomura Research Institute in Tokyo. He studied at the Chinese
The privatization process in China began with small and medium-size enterprises and extended to large state-owned enterprises after the policy of "strategic realignment of state-owned sectors of the economy" was adopted at the... more
The privatization process in China began with small and medium-size enterprises and extended to large state-owned enterprises after the policy of "strategic realignment of state-owned sectors of the economy" was adopted at the 15th National Congress of the Communist Party of ...
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The Japanese economy has been in a slump ever since the asset bubble burst in 1990 and has yet to recover fully from the aftereffects. A bubble appears to be forming in China, where property and other asset prices have risen sharply as a... more
The Japanese economy has been in a slump ever since the asset bubble burst in 1990 and has yet to recover fully from the aftereffects. A bubble appears to be forming in China, where property and other asset prices have risen sharply as a result of an accommodative monetary policy. If China is not to share the same fate as Japan, it needs to learn the following lessons from Japan’s experience. First, in view of the risk that asset price fluctuations can destabilize the financial system (e.g., by leading to an increase in nonperforming loans), monetary policy should take account of what is happening to the price of assets such as shares and property, in addition to prices as measured by the CPI. Second, a bubble is usually the result of excess liquidity, and the central bank should monitor the rate of credit expansion, as well as any changes in its major components, especially property-related loans. Third, it should try to identify risks to the economy before they emerge and pursue a...
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FiguresTablesAbbreviationsContributors1. The Emergence of Subregional Economic Zones in Asia: EKY Chen (Lingnan College, Hong Kong) & CH Kwan (Head of Asian Research, Nomura Research Institute, Tokyo)2. The South China Economic Zone:... more
FiguresTablesAbbreviationsContributors1. The Emergence of Subregional Economic Zones in Asia: EKY Chen (Lingnan College, Hong Kong) & CH Kwan (Head of Asian Research, Nomura Research Institute, Tokyo)2. The South China Economic Zone: Joseph Siu-Lun Lee (Research Officer, Legislative Council Secretariat, Hong Kong)3. The Northeast Asian Economic Zone - Potential for the Latecomer: Yukiko Fukagawa (Senior Economist, LTCB Research Institute, Tokyo)4. Growth triangles in Singapore, Malaysia and ASEAN - Lessons for Subregional Cooperation: Lee Tsao Yuan (Deputy Director, Institute of Policy Studies, Singapore)Appendix to Chapter 4: The Riau islands - Development in Progress: Junko Fukuda 5. The Indochina Economic Zone: Osamu Yasuda (Counsellor, Nomura Research Institute, Tokyo) & CH Kwan6. Towards a Borderless Economy in Asia: CH Kwan7. Conclusion: EKY ChenIndex
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Since the late 1990s the Chinese government has sought to limit the role of state-owned enterprises to areas such as providing public goods and services while leaving competitive areas of the economy to the private sector through... more
Since the late 1990s the Chinese government has sought to limit the role of state-owned enterprises to areas such as providing public goods and services while leaving competitive areas of the economy to the private sector through privatization. To achieve this goal, both the country's securities markets and the governance of those enterprises that remain under state control need to be improved.
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The foreign exchange rate system adopted by China in July 2005 can be characterized as a manage floating system based on the BBC rules-band, basket and crawl. However, the authorities have continued to suppress the yuan's rise against... more
The foreign exchange rate system adopted by China in July 2005 can be characterized as a manage floating system based on the BBC rules-band, basket and crawl. However, the authorities have continued to suppress the yuan's rise against the dollar by intervening in the foreign exchange market, and the C in BBC has looked more like control than crawl.
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China's economy has grown by an average of nearly 10% a year since the country embraced economic reform in 1978. In contrast, Japan's economy has been stuck in a rut ever since the asset boom of the 1980s turned to bust in the... more
China's economy has grown by an average of nearly 10% a year since the country embraced economic reform in 1978. In contrast, Japan's economy has been stuck in a rut ever since the asset boom of the 1980s turned to bust in the 1990s. Japan may have much to learn from China's experience in its attempts to revitalize its economy. China's experience suggests that fostering a new system is strategically more important for successful reform than changing the old system. Like China’s non-state-owned sector (private and foreign-funded companies) in its initial stages, no matter how weak a new system is or what its shortcomings are, it is a mistake to ignore its potential. China's experience of economic reform suggests that Japan needs to focus more on growth industries and venture businesses than on mature industries and large companies. Also, it might do more to encourage inward direct investment.
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China's public pension system now consists of an urban social pension scheme and a new rural social pension scheme, both pilots, in addition to the existing urban workers' basic pension, public service workers' pension, and... more
China's public pension system now consists of an urban social pension scheme and a new rural social pension scheme, both pilots, in addition to the existing urban workers' basic pension, public service workers' pension, and rural pension schemes. Nevertheless, there are still many unresolved issues and considerable scope for improvement. First, coverage is still low. Second, there exists wide discrepancy in benefit levels between the different pension schemes. Third, there is a lack of pension portability as a result of the fact that each urban area tends to administer its own pension scheme. Finally, as societal aging accelerates and people live longer, the number of those in work and making contributions will decline while the number retired and receiving payments will increase, making it increasingly difficult to finance pension schemes.
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... Chia, Siow Yue. ... Flows in the Asian Countries CH Kwan 1 2 Asia's Currency Crisis and Its Implications for the Japanese Economy CH Kwan 25 3 ... 192 9 Coping with Capital Flows and the Role of Monetary Policy:... more
... Chia, Siow Yue. ... Flows in the Asian Countries CH Kwan 1 2 Asia's Currency Crisis and Its Implications for the Japanese Economy CH Kwan 25 3 ... 192 9 Coping with Capital Flows and the Role of Monetary Policy: The Malaysian Experience, 1990-95 Ong Hong Cheong 220 10 ...
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China's state-owned banks need the help of foreign partners to improve their efficiency, while foreign financial institutions are keen to enter the Chinese market through tie-ups with local banks. Thus capital participation of foreign... more
China's state-owned banks need the help of foreign partners to improve their efficiency, while foreign financial institutions are keen to enter the Chinese market through tie-ups with local banks. Thus capital participation of foreign financial institutions in China's state-owned banks provides a win-win strategy for both sides to achieve their objectives.
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Meanwhile, the rapid pace of industrialization in China and the surge in exports accompanying it have been regarded as the main cause of global deflation. Led by Japan, major industrial countries have strongly requested that China allow... more
Meanwhile, the rapid pace of industrialization in China and the surge in exports accompanying it have been regarded as the main cause of global deflation. Led by Japan, major industrial countries have strongly requested that China allow the yuan to appreciate. However, for Japan, reflecting the fact that its economic relationship with China can better be characterized as complementary rather than competitive, the overall impact of an appreciation of the yuan on the Japanese economy is likely to be a negative one.
Since the 1985 Plaza Accord, economic interdependence among the Asian economies has been deepening on the back of rising intra-regional trade and investment, while their dependence on the United States has fallen sharply. Based on these... more
Since the 1985 Plaza Accord, economic interdependence among the Asian economies has been deepening on the back of rising intra-regional trade and investment, while their dependence on the United States has fallen sharply. Based on these emerging trends, this book explores the possibility of forming a yen bloc in the Asia-Pacific region.
The Chinese government has been hesitant to revalue the yuan out of concern over the negative impact revaluation would have on the domestic economy. To maintain a stable exchange rate, however, the authorities have had no choice but to... more
The Chinese government has been hesitant to revalue the yuan out of concern over the negative impact revaluation would have on the domestic economy. To maintain a stable exchange rate, however, the authorities have had no choice but to tolerate large balance of payment surpluses and a rapid increase in foreign reserves. This has already led to some negative outcomes, including increased trade friction with trading partners and excess liquidity. To redress these external imbalances and regain autonomy in its monetary policy, China needs to move toward a free floating exchange rate system by refraining from intervention and letting the market determine exchange rates.
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Although manufactured goods have come to make up the bulk of China’s fast expanding exports, the country’s competitiveness still lies in low-value-added products. Reflecting this, Chinese exports do not directly compete with Japanese... more
Although manufactured goods have come to make up the bulk of China’s fast expanding exports, the country’s competitiveness still lies in low-value-added products. Reflecting this, Chinese exports do not directly compete with Japanese exports; rather, they complement each other. China’s export structure also lags behind Asia’s newly industrializing economies (NIEs) and major members of the Association of Southeast Asian Nations (ASEAN). Based on a comparison of the trade structures among Asian nations, we find that they are broadly in line with their respective levels of economic development. In short, there is no evidence showing that the flying-geese formation has been disrupted by the emergence of China. Even in China’s fast-growing IT-product sector, the country’s export competitiveness still lags far behind not only Japan, but also other Asian countries. There is a clear division of labor between Japan and China, with the former specializing in high-value-added products and the ...
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ABOUT BROOKINGS The Brooklngs Institution is a private nonprofit organization devoted to research, education, and publication on important issues of domestic and foreign policy. Its principal purpose is to bring knowledge to bear on... more
ABOUT BROOKINGS The Brooklngs Institution is a private nonprofit organization devoted to research, education, and publication on important issues of domestic and foreign policy. Its principal purpose is to bring knowledge to bear on current and emerging policy problems. The ...
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ECONOMIC INTERDEPENDENCE IN THE ASIA-PACIFIC REGION In 1985 the Plaza Accord initiated a global realignment of exchange rates. This has resulted in phenomenal economic growth and inte-gration in the Asia-Pacific region and, in contrast,... more
ECONOMIC INTERDEPENDENCE IN THE ASIA-PACIFIC REGION In 1985 the Plaza Accord initiated a global realignment of exchange rates. This has resulted in phenomenal economic growth and inte-gration in the Asia-Pacific region and, in contrast, the decline of US ...