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Chinese Financial Diplomacy In The Area Of International Monetary Politics

Posted on:2016-06-13Degree:MasterType:Thesis
Country:ChinaCandidate:Z Z JiangFull Text:PDF
GTID:2296330467499266Subject:International politics
Abstract/Summary:PDF Full Text Request
Leading countries of international monetary and financial system will gain a series of excessive economic interests as well as Superiority of political power in international currency politics. Excessive economic interests include:international seigniorage, capacity of economic interests transfer, lower transaction costs, independence of monetary policy and comparative advantage of international financial. Superiority of political power include:the power to shape the order of the world, to realize the goals of national political and to preserve the advantages of the native international financial actors. It need to have certain economic foundation of political power to become a leading country of international monetary system. Economic foundation mainly includes:large scale of the overall economy and international trade, confidence in the international monetary, liquidity of the financial market and the externalities of the monetary trading network. Politic ability foundation include:military strength, political negotiation ability and the ability to provide international public goods.Deep crisis is happening in the international monetary and financial systems now, the international monetary and financial system is coming into a period of adjustment, China’s financial diplomacy will inevitably adjust. Deep crisis of the system is mainly the "Jamaica system" under dollar is out of control, small countries’ currency attached to great power’s under floating exchange rate system, small countries are powerless in the international financial governance mechanism, the deformed development of the U.S. economy led to the imbalance of the global economy, as a latter monetary country in the monetary and financial order China is in a vulnerable position. The international monetary and financial systems comes into a period of adjustment after the financial crisis and the old governance mechanism failed, but the game of governance mechanism has not achieve to a state of balance, developed economies make use of the currency advantages to implement quantitative easing monetary policy and lead to the international liquidity, the powerless countries in the international monetary and financial system are violated. The external stress caused "dollar trap" and risk of exchange rate to China’s national interests, China needs to get rid of unequal financial dependency on the United States.This paper selects two cases in2014of Chinese monetary and financial diplomacy. One is the Asian infrastructure investment bank and the preparation of the Silk Road fund and the other is the financial diplomacy2014between China and Western Europe, to explore the process of China to expand its financial influence through diplomatic method. Through investigation of the two cases, Chinese financial diplomacy is in a promising phase, win-win international cooperation is the main path for China to implement financial diplomacy, and the political consultative ability is the key to achieve success. China’s financial diplomacy bearing the mission to change China’s international division, in the financial diplomacy, china has to learn the financial governance from the Europe, provide loans to developing countries, and China is becoming a political center of Eurasian financial integration. China’s Eurasian financial diplomacy promoted the ability of China to bargain in the age of financial reform, and China will play a key role of the club in a multi-polar international monetary and financial system. China’s financial rise is still in the primary stage, without the support of hard power in politic, microeconomic ability becomes the key to develop.
Keywords/Search Tags:monetary politic, international monetary system, China’sfinancial diplomacy
PDF Full Text Request
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