Contents -- Part I: Overview of Papers and Introduction -- Introduction John Whalley -- Chapter 1: The Impacts of the 2008 Financial Crisis on China John Whalley -- 1.1. Background -- 1.2. The Dimensions of the 2008 Crisis and Scenarios for Its Further Development at the Time -- 1.3. Policy Responses in China -- 1.4. Chinese Interests in International Architecture -- Chapter 2: How Can the G20 Better Support Global Governance? A Chinese Perspective Yuyan Zhang and Huifang Tian -- 2.1. Global Governance: A Global Public Good Approach -- 2.1.1. The concept of global governance -- 2.1.2. Global public goods and global governance -- 2.2. Key Global Governance Issues in the New Stage: Financial Stability, Global Imbalance, Sustainable Development -- 2.3. Role of the G20: A New Framework for Global Governance? -- 2.3.1. Role transformation of the G20 in and after the crisis: crisis management to promotion of sustainable growth -- 2.3.2. The G20 - will it be a robust and sustainable global governance model? -- 2.3.2.1. Top-level configuration and strong influence -- 2.3.2.2. Broad representatives -- 2.3.2.3. Rebalance of world power -- 2.3.2.4. Efficiency and authority -- 2.4. Challenges Faced by the G20 and Ways to Reform -- 2.4.1. Challenges faced by the G20 -- 2.4.1.1. Mechanism dilemma -- 2.4.1.2. Lack of legitimacy -- 2.4.1.3. Internal divisions -- 2.4.1.4. Conflict between inclusiveness and effectiveness -- 2.4.1.5. Competitor or cooperator with other institutions? -- 2.4.2. Ways to reform -- 2.4.2.1. More perfect operation mechanism -- 2.4.2.2. More inclusiveness -- 2.4.2.3. Effective policy coordination -- 2.4.2.4. Equal and just rights of participation -- 2.4.2.5. A fair share of responsibilities -- 2.4.2.6. Better to improve G20 multilateral working relationship -- 2.5. The Role of China in Supporting Global Governance as a G20 Member.

2.5.1. China's position on global governance -- 2.5.2. What China has done since the G20 Seoul Summit -- 2.5.3. What public goods can China provide to better support global governance? -- 2.5.3.1. Global economic imbalance issue -- 2.5.3.2. Reform of international monetary system -- 2.5.3.3. Commodity markets -- 2.5.3.4. International trade and protectionism -- 2.5.3.5. Governance of civil society -- 2.5.3.6. International coordination -- 2.6. Conclusion -- References -- Part II: Macroeconomic Policies -- Chapter 3: The Chinese Savings Rate: Causes and Implications for Imbalances Yuezhou Cai and Tongsan Wang -- 3.1. Introduction -- 3.2. Facts/Data about Chinese Savings -- 3.2.1. Chinese national savings -- 3.2.2. The three components of Chinese Gross National Savings -- 3.3. Possible Explanations for Chinese High Savings -- 3.3.1. Explanations for the household savings -- 3.3.2. Explanations for the corporate savings and government savings -- 3.3.3. Underlying driving forces of the Chinese high savings -- 3.4. Chinese Savings, RMB Appreciation, and Global Imbalance -- 3.5. Future Trend of Chinese Savings -- 3.6. Concluding Remarks and Policy Recommendations -- Acknowledgments -- References -- Chapter 4: Labour Market Reform, Income Inequality and Economic Growth in China Ming Lu and Hong Gao -- 4.1. Introduction -- 4.2. China's Development Path and the Global Economic Crisis -- 4.3. The Turning-Point in Labour Market Reform: What Happened Around 1996? -- 4.4. The Consequences of Labour Market Reform and Income Inequality -- 4.4.1. Labour market reform -- 4.4.2. The effects of widening income inequality -- 4.5. Concluding Remarks -- Acknowledgments -- References -- Chapter 5: Institutional Constraints, Identity and Household Consumption Heterogeneity in China Binkai Chen, Ming Lu and Ninghua Zhong -- 5.1. Introduction.

5.2. China's Consumption and Savings: Facts and Literature Review -- 5.3. Model Specification and Data -- 5.4. Empirical Results -- 5.4.1. Baseline results -- 5.4.2. Robustness checks -- 5.4.3. Life cycle hypothesis and consumption heterogeneity -- 5.4.4. Institutions or culture? -- 5.5. Mechanism Analysis -- 5.5.1. Hukou, precautionary saving and household consumption -- 5.5.2. Hukou and sub-category consumption -- 5.6. Conclusion and Policy Implications -- Acknowledgments -- References -- Part III: China's Trade -- Chapter 6: What Accounts for China's Export Market Performance During the Financial Crisis? Ma Tao and Zhang Lin -- 6.1. Introduction -- 6.2. Stylised Fact -- 6.2.1. Increasing the market share of China's export to the world -- 6.3. China's Export Market Share in Individual Destinations -- 6.4. Empirical Study -- 6.4.1. Econometric model -- 6.4.2. Data acquisition -- 6.5. Estimation Results -- 6.6. Policy-driven Factors and Effectiveness -- 6.6.1. Adjustment of export tax rebate -- 6.6.2. Implementation of trade credit and loans -- 6.6.3. China's stimulus trade and macroeconomic policies -- 6.6.4. Policy analysis and suggestions -- 6.7. Conclusion -- References -- Chapter 7: The Global Financial Crisis and China's Trade in Services: Impacts and Trade Policy Responses Ying Fan -- 7.1. Introduction: The Growing Importance of Services and Services Trade Paradox in China -- 7.2. Impacts of the Global Financial Crisis on China's Trade in Services - Stylised Facts and Main Findings -- 7.2.1. Global financial crisis and its impacts on China's trade in services - stylised facts -- 7.2.2. Main findings - shift in the V-curve of China's services trade and possible reasons -- 7.3. China's Post-Crisis Services Trade Policy: Challenges, Opportunities and Possible Direction.

7.3.1. Policies adopted by Chinese government in services sectors to respond to global financial crisis -- 7.3.2. Where China's services policies should be headed: challenges and opportunities -- 7.3.2.1. Opportunities of services trade with China post crisis -- 7.3.2.2. Challenges of services trade with China post crisis -- 7.3.3. Dimensions of policy reform and possible direction in China's services sector -- 7.3.3.1. Effective policy system linkage in services should be established -- 7.3.3.2. Trade promotion policy reform to expand exports of services by key sectors -- 7.3.3.3. Reducing trade/investment barriers in services by policy mix -- 7.3.3.4. Tax system reform aimed at strengthening services sector -- 7.3.3.5. Competition policy reform to provide equal opportunity for all services providers -- 7.3.3.6. Financial policy reform for private and small and medium enterprises in services sector -- 7.3.3.7. Negotiate market access for China services exports under GATS and GATS+commitments -- 7.3.3.8. Diminish the negative effects of trade liberalisation in services by complementary policies reform -- 7.4. Conclusion -- Chapter 8: How Much Did China's Exports Drop During the 2008-2009 Financial Crisis? Ran Jing -- 8.1. Introduction -- 8.2. Collapse of China's Exports: Aggregate Impacts -- 8.3. Margins of Trade Collapses -- 8.4. Empirical Methods -- 8.5. Estimation Results -- 8.6. Conclusions and Policy Implications -- Acknowledgments -- References -- Appendix -- Part IV: Exchange Rate Policy and Reserve Management -- Chapter 9: Employment versus Wage Adjustment and Revaluation of RMB Risheng Mao -- 9.1. Introduction -- 9.2. Theoretical Linkage of Exchange Rate Change and Labour Market Adjustment -- 9.3. Literature -- 9.4. Revaluation of RMB and Labour Market Adjustment of China.

9.4.1. Employment versus wage growth and real exchange rate movements -- 9.4.2. Industry specific real effective exchange rate of RMB -- 9.4.3. Employment versus wage growth for manufacturing industries with different profit margins and trade openness -- 9.4.4. Employment and wage adjustment of state-owned, private and foreign invested enterprises -- 9.4.5. A brief summary of related empirical evidence -- 9.5. Conclusion and Policy Implication -- Acknowledgments -- References -- Chapter 10: China's Sovereign Wealth Fund as Foreign Reserve Manager: Pre- and Post-Crisis Yiwen Fei and Xichi Xu -- 10.1. Introduction -- 10.2. Why SWF? -- 10.3. SWFs: Pre- and Post-Financial Crisis -- 10.3.1. Pre-crisis -- 10.3.1.1. Mysterious, due to low transparency and with "political concerns" -- 10.3.1.2. "Passive investor" -- 10.3.1.3. Higher risk tolerance -- 10.3.1.4. Herding effects in investments, with obvious preference to financial companies -- 10.3.2. The negative and positive impacts of the financial crisis on SWFs -- 10.3.3. Post-crisis -- 10.3.3.1. More public mechanisms have been introduced to internal and external governance of SWFs -- 10.3.3.2. Advanced markets opened the door to SWFs -- 10.3.3.3. More and more SWFs began to find out new ways to better manage their assets -- 10.3.3.4. More SWFs sprouted after the crisis -- 10.4. A Case Study on China Investment Corporation -- 10.4.1. China's sovereign wealth system in FX reserves -- 10.4.2. Introduction to China Investment Corporation (CIC) -- 10.4.3. CIC: pre- and post-crisis comparison -- 10.4.3.1. First, CIC has transitioned gradually from duly sovereign monitoring to a mix with public supervision -- 10.4.3.2. Second, CIC has turned to be a more positive "passive investor" -- 10.4.3.3. Third, CIC's investment behavior differed greatly pre- and post-financial crisis.

10.5. Prospects and Policy Suggestions for SWFs.