The Making of China’s Exchange Rate Policy

From Plan to WTO Entry

Leong H. Liew, Professor, Department of International Business and Asian Studies, Griffith University, Australia and Harry X. Wu, Hitotsubashi University, Japan

During Asia’s financial crisis, the attention of policymakers was focused on China’s exchange rate policy. Post-crisis, this interest has increased further due to China’s growing influence in world trade and investment. However, the process of policy making in China is still opaque, creating demand for further research on how China formulates exchange rate policy. This book examines the major factors influencing China’s exchange rate policy from the foundation of the People’s Republic to the present. It analyses how national economic and political priorities, international influences, domestic and institutional interests and new constraints imposed by China’s rapidly globalising post-Mao economy determine exchange rate policy.