China able to sustain RMB stability
- By Mei Xinyu
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E-mail China.org.cn, October 6, 2015
At the same time, as turmoil of the Chinese market has evoked a matching response in the global market, China's relative advantage in systematic significance and macro-stability has become prominent. This will also impair any motivation for capital flight to the U.S. dollar.
In the initial Sub-Prime Crisis in the United States., capital fled from U.S. dollar; but when the crisis spread to the rest of the world, it returned to the traditional "safe haven." China will gradually assume a similar role.
For an emerging big power, short-term economic turmoil does not really mean the end of its rise. Instead, it may show the country's economic influence.
The U.S. manufacturing industry had become No.1 in the world by the early 1880s. After World War I, the United States became the world's biggest creditor. Even so, it still was not the one with the greatest influence in the international economy, finance and the setter of market rules. It was after the U.S. stock market collapsed with huge impact on the world in 1929 that the significant influence of the American economy and finance was shown.
Under his New Deal, President Franklin D. Roosevelt carried out a great reform to deal with the problems exposed by the crisis, thus guaranteeing continuous rise of the U.S. position in the international economic and political system. And then, it became the power in the capitalist world after World War II.
The writer is a researcher with the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce.
The article was written in Chinese and translated by Li Bin.
Opinion articles reflect the views of their authors only, not necessarily those of China.org.cn.
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