At the end of 2013, the People’s Bank of China indicated that the country’s foreign exchange reserves are now big enough. To find out what this means the FT’s Emma Boyde talks to Li Haitao, professor of finance and associate dean for the MBA programme at Cheung Kong Graduate School of Business.
At the end of 2013, the People’s Bank of China indicated that the country’s foreign exchange reserves are now big enough. To find out what this means the FT’s Emma Boyde talks to Li Haitao, professor of finance and associate dean for the MBA programme at Cheung Kong Graduate School of Business.
“It reflects what is happening in the Chinese economic growth model. In the past ten years, China has been the manufacturer of the world. We sell everything to the rest of the world. And that is why we have accumulated so much foreign reserve. But right now, the export driven economic growth model is slowing down because of what is happening in the West… In Europe… In America… China, in order to keep growing, needs to find new areas for growth – which I think, one of the biggest drivers of which, will be internal consumption… We at CKGSB are at the front seat of what is happening right now.”
Watch Educating China’s private businessmen on the Financial Times website, video.ft.com (subscribers only).
