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Beijing Bubble, Beijing Bust: Inequality, Trade, and Capital Inflow into China

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  • James Galbraith

    ()

  • Sara Hsu

    ()

  • Wenjie Zhang

    ()

Abstract

This paper explores the relationships between inequality, trade, and capital flows into China since the early 1990s and particularly in the first years of the present decade. We show that the rise in economic inequality in China has more to do directly with the activities associated with China’s financial and building boom, notably in Beijing, than with the massive growth in manufacturing employment and in Chinese exports since China joined the WTO in 2001. Nevertheless, it is likely that a flow of profits from the export boom did feed the speculative fires in the capital and elsewhere, and therefore it should be no surprise that the fall of one should be linked to the fall of the other, in a particularly painful reduction of economic inequality.

Suggested Citation

  • James Galbraith & Sara Hsu & Wenjie Zhang, 2009. "Beijing Bubble, Beijing Bust: Inequality, Trade, and Capital Inflow into China," Journal of Current Chinese Affairs - China aktuell, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 38(2), pages 3-26.
  • Handle: RePEc:gig:chaktu:v:38:y:2009:i:2:p:3-26
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    File URL: http://hup.sub.uni-hamburg.de/giga/jcca/article/view/43/43
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    References listed on IDEAS

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    1. James K. Galbraith & Ludmila Krytynskaia & Qifei Wang, 2004. "The Experience of Rising Inequality in Russia and China during the Transition," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 1(1), pages 87-106, June.
    2. Yue Ma & Huayu Sun, 2007. "Hot Money Inflows and Renminbi Revaluation Pressure," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 5(1), pages 19-36.
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    Cited by:

    1. Joseph Cheng, 2009. "Chinese Perceptions of Russian Foreign Policy During the Putin Administration: U.S.-Russia Relations and “Strategic Triangle” Considerations," Journal of Current Chinese Affairs - China aktuell, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 38(2), pages 145-168.
    2. André Laliberté, 2009. "The Regulation of Religious Affairs in Taiwan: From State Control to Laisser-faire?," Journal of Current Chinese Affairs - China aktuell, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 38(2), pages 53-83.

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