Political Geography: China / Topic: Debt

Author:: Brad W. Setser and Arpana Pandey
Publication Date:: 01-2009
Content Type:: Working Paper
Institution:: Council on Foreign Relations
Abstract:: China reported $1.95 trillion in foreign exchange reserves at the end of 2008. This is by far the largest stockpile of foreign exchange in the world: China holds roughly two times more reserves than Japan, and four times more than either Russia or Saudi Arabia. Moreover, China's true foreign port- folio exceeds its disclosed foreign exchange reserves. At the end of December, the State Administration of Foreign Exchange (SAFE)—part of the People's Bank of China (PBoC) managed close to $2.1 trillion: $1.95 trillion in formal reserves and between $108 and $158 billion in “other foreign assets.” China's state banks and the China Investment Corporation (CIC), China's sovereign wealth fund, together manage another $250 billion or so. This puts China's total holdings of foreign assets at over $2.3 trillion. That is over 50 percent of China's gross domestic product (GDP), or roughly $2,000 per Chinese inhabitant.
Topic:: International Relations, Debt, Economics, Emerging Markets, and International Trade and Finance
Political Geography:: Russia, United States, China, Israel, Asia, and Saudi Arabia

Author:: Daniel W. Drezner
Publication Date:: 10-2009
Content Type:: Journal Article
Journal:: International Security
Institution:: Belfer Center for Science and International Affairs, Harvard University
Abstract:: China has challenged the United States on multiple policy fronts since the beginning of 2009. On the security dimension, Chinese ships have engaged in multiple skirmishes with U.S. surveillance vessels in an effort to hinder American efforts to collect naval intelligence. China has also pressed the United States on the economic policy front. Prime Minister Wen Jiabao told reporters that he was concerned about China's investments in the United States: “We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried.” The head of the People's Bank of China, Zhou Xiaochuan, followed up with a white paper suggesting a shift away from the dollar as the world's reserve currency. China's government has issued repeated calls for a greater voice in the International Monetary Fund (IMF) and World Bank. To bolster this call, Beijing helped to organize a summit of the leaders of Brazil, Russia, India, and China (BRIC) to better articulate this message.
Topic:: Security, Debt, Government, and Intelligence
Political Geography:: Russia, United States, China, India, and Brazil

Author:: Adam Lerrick
Publication Date:: 11-2005
Content Type:: Policy Brief
Institution:: American Enterprise Institute for Public Policy Research
Abstract:: World Bank money is building schools in China's impoverished western provinces, but the bill for interest charges is being mailed to the United Kingdom, attention Chancellor of Exchequer Gordon Brown. Mexico, Chile, and Brazil will soon be lining up for the same deal. This is but the latest scheme designed to preserve the World Bank's lending role at a time when the need and demand for its services are falling. Major middle-income countries, the cream of the bank's lending portfolio and where more than 80 percent of Latin Americans live, are curbing their borrowing and paying down their balances, setting off alarms at the bank. Net loan flows have shifted from a positive $10 billion in 1999–2001, to a negative $15 billion in 2002–2004.
Topic:: Debt, Development, Economics, and Third World
Political Geography:: China, United Kingdom, Brazil, Latin America, Mexico, and Chile

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