In this panel discussion, Geng Xiao argues that China’s inflation must be viewed not just as a current monetary issue, but rather as a part of the country’s long-term economic development.
China’s current levels of inflation are healthy and should in time be matched by appreciation against foreign currencies. To ensure this transition, China needs to minimize its financial risks by developing Shanghai into a world-class financial center and not rely exclusively on Hong Kong.
China was the single largest infrastructure financier in 11 African countries between 2009 and 2012.
“Hong Kong is at a different point in its political and social development (compared with mainland China) and that allows a different policy position. China, in the Basic Law, granted Hong Kong people rights that are present in the International Covenant on Civil and Political Rights, and it granted the rule of law through an independent judiciary. All of those are precious assets and the United States should oppose any backsliding from what Hong Kong already has.”