China's New Economic Frontier: Overcoming Obstacles to Continued Growth

China's economy is at a pivotal moment, as it faces both imminent and long-term challenges that may significantly hamper the robust growth it has enjoyed in recent decades. Income inequality, increased debt, an aging population, shrinking labor force, and a slow transition from manufacturing to services risk threatening the country's social and economic stability.

China's continued economic growth is an essential part of the Chinese Dream, President Xi Jinping's vision for the reemergence of China's prominence on the global stage. China once championed laying low and biding its time while it built its strength, but that time has clearly passed. The road to a "prosperous and strong country," as President Xi has said of the Chinese Dream, will likely be a road filled with hurdles.

In this volume of essays PIIE experts explore various areas of concern for China's economic development. The authors use historical or data-driven analysis to explain what is happening, why it is important for China, and then provide recommendations for policymakers in China and elsewhere.

Contents

Introduction

1 Financial Regulation: The G-20's Missing Chinese Dream
Nicolas Véron

2 Effectiveness and Independence of Monetary Policy in China and
Around the World
Joseph E. Gagnon

3 China's Surprisingly Poor Educational Track Record
Jacob Funk Kirkegaard

4 Reflections on Exchange Rate Policies and Financial Markets
Edwin M. Truman