China’s increasingly sophisticated approach to managing and mitigating multiple forms of investment risk shows that its economic role around the world will evolve and perhaps become more conservative over time. Headline pledges of billions of dollars in project finance don’t tell the whole story.
The world needs permanent organizations that earn political power and govern, that are forced to articulate disparate interests and viewpoints, that can recruit and develop future government leaders and that monitor those already in power.
If local governments and state-owned enterprises in China systematically invest in projects that are not economically justified, to the extent that these projects are not correctly marked to market, China’s reported GDP will be overstated by that amount, as will its total wealth.
Naím is a distinguished fellow at the Carnegie Endowment for International Peace, where his research focuses on international economics and global politics. He is currently the chief international columnist for El País, Spain’s largest newspaper, and his weekly column is published worldwide.
Sarah Chayes is internationally recognized for her innovative thinking on corruption and its implications. Her work explores how severe corruption can help prompt such crises as terrorism, revolutions and their violent aftermaths, and environmental degradation.
Feigenbaum’s work focuses principally on China and India, geopolitics in Asia, and the role of the United States in East, Central, and South Asia. His previous positions include deputy assistant secretary of state for South Asia, deputy assistant secretary of state for Central Asia, and member of the secretary of state’s policy planning staff with principal responsibility for East Asia and the Pacific.
Nonresident Scholar Carnegie-Tsinghua Center for Global Policy
Ferchen specializes in China’s political-economic relations with emerging economies. At the Carnegie–Tsinghua Center for Global Policy, he runs a program on China’s economic and political relations with the developing world, including Latin America.
Deputy Director Carnegie–Tsinghua Center for Global Policy
Tang Xiaoyang is a resident scholar and the deputy director of the Carnegie–Tsinghua Center for Global Policy and an associate professor in the Department of International Relations at Tsinghua University. His research interests include political philosophy, China’s modernization process, and China’s engagement in Africa.