The Global Business Law Review Volume 1 Issue 1 Article 5 2010 China’s Response to the Global Financial Crisis: Implications for U.S. – China Economic Relations Daniel C.K. Chow The Ohio State University Moritz College of Law Follow this and additional works at: https://engagedscholarship.csuohio.edu/gblr Part of the Banking and Finance Law Commons, and the International Trade Law Commons How does access to this work benefit ou?y Let us know! Recommended Citation Daniel C.K. Chow, China’s Response to the Global Financial Crisis: Implications for U.S. – China Economic Relations , 1 Global Bus. L. Rev. 47 (2010) available at https://engagedscholarship.csuohio.edu/gblr/vol1/iss1/5 This Article is brought to you for free and open access by the Journals at EngagedScholarship@CSU. It has been accepted for inclusion in The Global Business Law Review by an authorized editor of EngagedScholarship@CSU. For more information, please contact
[email protected]. CHINA’S RESPONSE TO THE GLOBAL FINANCIAL CRISIS: IMPLICATIONS FOR U.S.-CHINA ECONOMIC RELATIONS DANIEL CHOW* ABSTRACT ............................................................................. 48 I. THE GLOBAL FINANCIAL CRISIS AND ITS EFFECT ON CHINA . 49 A. China’s Export Driven Economy................................... 50 1. Exports as a Percentage of GDP............................. 50 2. China’s Trade Balance with the United States....... 51 a. Lack of Reciprocal Spending By China .......... 54 b. Currency Policies............................................ 56 c. Export Subsidies.............................................. 59 3. Foreign Direct Investment...................................... 60 4. Summary ................................................................ 62 5. Impact of Financial Crisis ...................................... 63 II. CHINA’S RESPONSE TO FINANCIAL CRISIS ............................. 66 A. Political Response......................................................... 68 B. Economic Response....................................................... 71 1.