10th edition of Insight China: Session I 2011
Tuesday, 29th November
Global Debt Crisis: What Part Should China Play?
Since the first signs of European instability, both world stock and debt markets have been riding a rough and relentless rollercoaster. Not long after markets celebrated the measures taken at the last EU Summit, the announcement of a potential referendum in Greece and G20 leaders in Cannes ending their summit with no detail plans for the Euro Zone, fuelled again uncertainty about the European Union’s future.
On the other side of the Atlantic, the United States debt-ceiling crisis ended when a complex deal raising the debt ceiling and reducing future government spending. Only 5 days after President Barack Obama and Speaker of the House John Boehner announced that an agreement had been achieved, the credit-rating agency Standard & Poor's downgraded the credit rating of US government bond for the first time in the country's history. Similar debates are already being anticipated for the 2012 and 2013 budget.
In China, mounting local government debt has tripled as a percentage of GDP since 2008 amid a carnival of inefficient spending. Chinese banks’ exposure to local government loans is CNY 14 trillion (CNY 3.5 trillion larger than auditors estimated), potentially putting banks on the hook for deeper losses that could threaten their credit ratings. The measures taken to manage inflation by reducing liquidity have already left the private sector and especially SME’s with a worrisome horizon.
World trade is suffering the effects of the global debt crisis and China is not an exception. The Chinese PMI (Purchasing Managers’ Index) dropped in October to a 32-month low to 50.4% from 51.2% in September 2011. Yet global leaders’ eyes are turning to China for a much needed helping hand. What part should/could China play?
At the first session of the 10th Insight China, leading economists Annika Melander, Il Houng Lee, David Dollar and Ye Weiqiang will explore the main causes and drivers of the Global Debt Crisis as well as its economic and political implications for China.
Opening Speech Speaker:
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Dr. Lucian Cernat (bio)
Chief Economist of the European Commission
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Speakers:
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Mrs. Annika Melander (bio)
Counsellor and Head of Economic and Financial Affairs Section - Delegation of European Union |
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Mr. David Dollar (bio)
U.S. Treasury Department's Economic and Financial Emissary to China |
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Mr. Il Houng Lee (bio)
Senior Resident Representative - International Monetary Fund |
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Mr. Ye Weiqiang (bio)
Vice Chief Editor of China Reform and Director of Economic Research team of Caixin |
Moderator:
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Ms. Vivi Lin (bio)
English laguage TV presenter at Caixin Media |
The Agenda:
16:00-16:30 Registration
16:30-18:00 Presentation and Q&A
18:00-19:00 Networking and Canapés.
About Insight China:
Insight China is the European Chamber’s quarterly Macro Economic Seminar. Each quarter we invite leading economists to share their views and debate on current trends in the Chinese economy.
This winter will feature a double session of the Insight China series: “Global Debt Crisis: What Part Should China Play?” will be held on 29th November at 16:00 in the Kempinski Hotel in Beijing and “China’s Economic Outlook 2012: The zugzwang scenario” on 9th December.
Sponsored by:
Media Partner:
Sponsorship opportunities are available at this event. Should you be interested in sponsoring this event, please contact Betty Yin at byin@europeanchamber.com.cn or 010-6462 2066 ext 23.