China: The Nexus between Reforms and Capital Flows
The speaker will argue that China is compelled to reform at home both politically and economically. External capital flows play an important role in this process, as delaying reform may fuel capital flight, while future inflows, outflows and balances hinge on the success of structural adjustment. The coming years will be volatile and fraught with risks of reversal, as recent events and missteps have demonstrated. However, China has barely started financial globalization, and potential implications - political and economic – are at best dimly foreseen.