Contents

Foreword

Preface

CHAPTER 1 The World has Changed

A Permanent Shift of Power and Influence

The China Effect

Chinese Leadership

China Goes Global

Economic Upheaval

China and International Relations

China’s Internal Problems

China’s Growing Leadership Position

CHAPTER 2 Did China Cause the Credit Crisis?

China Joins the World Trade Organization

Bad Policy

Would Chinese Currency Revaluation Have Helped?

Seeds of the Crisis

Moral Hazard

The Collapse of Long-Term Capital Management and the Dot-Com Boom

The Specter of Deflation

Repeal of the Glass-Steagall Act

Securitization

CHAPTER 3 The Economic Effects of the Crisis on China

China Takes Off

China Becomes an Export Machine

The Effect of China’s Savings Rate

China’s Current Account Surpluses

CHAPTER 4 From G8 to G20: China’s Role in Global Governance

China’s Challenge

China’s Role in Global Institutions

CHAPTER 5 An End to Dollar Dominance?

A New Global Currency?

The Special Drawing Right

China and the World Currency

The United States and the World Currency

The Argument for a New World Currency

The Asian Region

CHAPTER 6 Rowing the Same Boat: Sino—American Relations

History of the Relationship

The Effect of Terrorism on Sino–American Relations

America and China’s Export Boom

Effect of the Financial Crisis

The G2?

CHAPTER 7 China as Asian Leader

The Struggle for Leadership in Asia

Economic Competition and Interaction in Asia

China and India

China and Japan

China and its Other Neighbors

CHAPTER 8 China and the Emerging World

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