You are here
Brown Bag Lecture Series
Brown Bag Lecture Series
Is China a New Growth Engine for the World Economy?
Co-sponsor: WEAI as part of the “Global Financial Crisis” series
Columbia Law School professors Benjamin Liebman and Owen Nee, SIPA professor Daniel Rosen and Business School professor Shang-Jin Wei made their observations about China and its role in the world economy to an overflow crowd. Professor Nee began the discussion by explaining the transformation of the Chinese attitude toward foreign investors. It has become much more difficult for foreigners to enter the Chinese market because government bureaucrats no longer promote investment in Chinese corporations, and SOEs only want to interact with foreign technology suppliers. While Chinese entrepreneurs are open to cooperation, be it legal or illegal, they too are no longer open to foreign ideas.
Professor Wei emphasized that an overconfident China, in the wake of its successful response to the financial crisis, may see little need for continued reforms. In addition, while past growth has been spurred by imitation of others, the Chinese are now confronting the difficulty of innovation, and it is possible that they will be unable to maintain similar growth rates. Despite these internal risks, China's current demographically male-dominant population supports an increasingly strong labor output as men strive harder to find and attract wives.
Professor Rosen presented the least optimistic analysis, focusing on rising tensions that have emerged over the last year, contrasting with the earlier consensus in Washington that economic cooperation with China will lead to mutual accommodation. Citing Obama's treatment by the Chinese on his trip to Beijing, China's aggression at Copenhagen and its threatened boycott of Boeing, Rosen sees China playing games with European and U.S. economic interests. Pairing the deterioration in Sino-U.S. and Sino-E.U. relations, China will have difficulty maintaining the trust of either as it seeks continued growth. However, on the bright side, all three panelists forecasted that China will come to embrace intellectual property rights over time, as both government and entrepreneurial investment demand that domestic innovation be protected.
APEC Study Center at Columbia University
Columbia University, 3022 Broadway
2M-9 Uris Hall
New York, NY 10027-7004
The Curl Ideas to wrap your mind around
10 Ways to Create a Culture of Open Communication
Creating a culture of open communication can be one of the best ways to inspire excellent performance, improve employee morale, and foster a warmer corporate culture, says Alexander Tuff ’03.Read More
Columbia Business School Welcomes Six New Board Members
In May, Columbia Business School welcomed six new members to its esteemed Board of Overseers.Read More
Columbia Startup Lab Revs Its Engines for Year Two
It’s been exactly one year since the Columbia Startup Lab opened its doors at 175 Varick Street as a shared workspace for budding Columbia entrepreneurs. With a proven track record and a full roster for the coming year, you might say the lab is a startup success story itself.Read More
AMERICAN TORTURE SUPPORTERS ARE OFTEN BIASED
New research from Columbia Business School reveals the selective beliefs behind torture supportRead More
Europe’s Last Act?
The euro was supposed to strengthen Europe. But it has had the opposite effect.Read More
Greece, Argentina, and the Middle-Income Trap
Aside from an established tradition of bad macroeconomics, what do Greece and Argentina have in common? They are the world’s longest-held captives of the middle-income trap.Read More
How Learning Creates Growth
Joseph E. Stiglitz and Bruce C. Greenwald explain how the key to economic innovation and prosperity lies within each of us — and within entire societies. The two were awarded the Eccles Prize for Excellence in Economic WritingRead More
The Flaws in the Trans-Pacific Partnership
It's not a partnership of equals, and it's not a free-trade agreement.Read More
The United States and China: An Unsustainable Codependency
A preeminent economist says both of the world's largest economies need to rebalance. Or else...Read More