Abstract

http://ssrn.com/abstract=1582647
 
 

References (62)



 
 

Citations (3)



 


 



Nation-State Legitimacy, Trade, and the China Investment Corporation


Gordon L. Clark


Oxford University - Smith School of Enterprise and the Environment

Ashby H. B. Monk


Stanford University - Global Projects Center

March 31, 2010


Abstract:     
Relations between China and the USA began with the best of intentions: the USA would sponsor the normalization of China’s status in the international community through trade in exchange for China’s commitment to peaceful co-existence with the west. As an emerging economy, China has relied upon trade for export-led economic growth, mimicking the path taken by its immediate neighbours over the past 25 years and the road taken previously by Germany and Japan. For a variety of reasons, the original deal has been over-taken by the massive surge in Chinese exports to the USA, the tensions occasioned by the global financial crisis, and the sense in which the USA, as a debtor country, is now reliant upon China for its long-term future. The China Investment Corporation (CIC) is a product of the original deal and is emblematic of the new status of China in the global economy. As one of the world’s largest sovereign wealth funds, the CIC has eschewed conventional portfolio investment in developed financial markets for strategic investment in resources and jurisdictions deemed essential to China’s long-term growth. As such, attempts to rein-in its ambitions through the Santiago Principles and the like have been circumvented by a very different approach to investment. The CIC is re-making the rules of engagement in global financial markets, thereby redrawing the nature and scope of the long-term relationship between the two superpowers of the twenty-first century: China and the USA.

Number of Pages in PDF File: 32

Keywords: Trade, China, imbalances, global investment

JEL Classification: G23, G24, L12

working papers series


Download This Paper

Date posted: April 2, 2010 ; Last revised: February 13, 2011

Suggested Citation

Clark, Gordon L. and Monk, Ashby H. B., Nation-State Legitimacy, Trade, and the China Investment Corporation (March 31, 2010). Available at SSRN: http://ssrn.com/abstract=1582647 or http://dx.doi.org/10.2139/ssrn.1582647

Contact Information

Gordon L. Clark (Contact Author)
Oxford University - Smith School of Enterprise and the Environment ( email )
South Parks Road
Oxford, OX1 3QY
United Kingdom
+44 1865 285197 (Phone)
+44 1865 285073 (Fax)
HOME PAGE: http://www.geog.ox.ac.uk/staff/glclark.html
Ashby H. B. Monk
Stanford University - Global Projects Center ( email )
Stanford, CA 94305
United States
Feedback to SSRN


Paper statistics
Abstract Views: 3,894
Downloads: 590
Download Rank: 23,188
References:  62
Citations:  3

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.422 seconds