A Study On The Relationship Between The Development Of China 's Transnational Bank And National Competitiveness

National competitiveness is a heatedly discussed topic among academics and policy makers. As a cross-disciplinary research subject, it can be well explained in the context of International Political Economics. Despite being widely touched upon in numerous publications, the issue has been seldom explored from the perspective of multinational banking. As finance is the core of modern economy, Chinese banks constitute the heart of the country’s financial regime. It is hence theoretically and empirically relevant to study, for the benefits of both China’s current economic stage and its banking sector, the interaction between China’s transnational banking growth and the country’s competence. This paper, based upon the National Competitiveness theory and its Evaluation System, attempts an in-depth analysis of how multinational banking impacts a country’s competence and offers a finding and solution from the very angle to boost the national competitiveness.Firstly, the author compares available opinions on “national competitiveness” and defines it as a set of strengths and capabilities a country owns relative to its competitors in wealth creation and productivity lift. The thesis gives a full analysis on theoretical evolution across disciplines like economics, international politics and management, followed by a thorough review of its Evaluation System. And then it claims how crucial financial elements are in the making of national competitiveness.Secondly, the dissertation digs theoretically and empirically into the impact of transnational banking on national competence. In theory, it studies financial elements in contemporary national competitiveness and argues from various dimensions that transnational banks are a vital part of financial competitiveness, which in turn exerts profound influences on the nation broadly. Empirically, it runs quantitative analysis, in light of Gray System theory, on relations between financial growth and a country’s competitiveness and concludes that the two share significant positive correlations. The paper then performs case study on the Netherlands, the United Kingdom and the United States in terms of the interaction between transnational banking and national competence to assert how monumental those banks and the growing financial sectors are for nation-wide competitiveness. Both approaches prove the significance.Thirdly, by describing China’s economic growth stage and competence weakness, the author claims that China has become a major economy, but not yet an economic power. It pins the weakness down to the country’s multinational banks. Despite their taking advantage of the financial crisis for global expansion in recent years, setting up offices in emerging markets and getting increasingly localized to service the mainstream, the Chinese banks remain less internationalized than their overseas rivals in terms of geographical presence, product innovation, spurring industrial capital growth and support to worldwide RMB usage.Finally, the paper proposes four solutions to enhancing China’s competitiveness through more mighty multinational banks, i.e., stronger banking for 1) industrial strength; 2) currency potency; 3) the power in defining international financial rules; and 4) the state strategies to foster.This dissertation attempts innovation in research subject, methodology and viewpoints. It employs methods of documentary research, qualitative and quantitative analysis, historical and case study and empirical and normative review.