World Economy and China 2003

Author: Compiled by the Chinese Society of World Economy
Publisher:
Publish Date: 2004-02-01
Features: A collection of award-winning papers from the President of the Chinese Society of World Economy. A reference tool for government departments, enterprises, universities, and research institutions; a recommended reading for candidates applying for Master's and Doctoral degrees in World Economy and International Politics. The world economy in 2003 remained turbulent. Since the collapse of the dot-com bubble in 2001, the global economy had entered a downturn. Although the U.S. Department of Commerce data showed that the U.S. economy would improve in 2004 by the end of 2003, the economies of Europe and Japan did not show substantial recovery. In an era of interdependence, this would, in turn, constrain the U.S. economic recovery. The outbreak of the Iraq War in 2003 and the sudden emergence of SARS further increased the uncertainty of the global economic recovery. The rise of trade protectionism in developed countries and the failure of the WTO Ministerial Conference held in Cancun, Mexico, in September 2003 severely damaged the development of global trade and the attractiveness of the multilateral trading system. After the depreciation of the U.S. dollar in 2002, the volatility of the international financial system began to increase. This year, international public opinion widely criticized the Chinese yuan, advocating its appreciation. In reality, the key issue is not China but rather reflects the asymmetry and instability in the current international financial system.