In-depth analysis of one of the world’s largest and most vital economies

China Financial Markets
commentary
China Financial Markets
Foreign Capital Inflows Don’t Lower U.S. Interest Rates

Contrary to conventional thinking, net foreign capital inflows do not lower American interest rates (unless they do so by raising U.S. unemployment). A tax on foreign inflows is therefore unlikely to cause American interest rates to rise, and could in fact be an effective way to stem increases in American debt that result from unlimited capital inflows.

· July 7, 2025
commentary
China Financial Markets
Which Country Should Design U.S. Industrial Policy?
· July 16, 2024
commentary
China Financial Markets
Can Trade Intervention Lead to Freer Trade?
· February 23, 2024
commentary
China Financial Markets
What Will It Take for China’s GDP to Grow at 4–5 Percent Over the Next Decade?
· December 4, 2023
commentary
China Financial Markets
Rising U.S. Debt Is the Mirror of Rising Chinese Debt
· August 9, 2023
commentary
China Financial Markets
Can China’s Long-Term Growth Rate Exceed 2–3 Percent?
· April 6, 2023
About China Financial Markets

China Financial Markets provides in-depth analysis of one of the world’s largest and most vital economies. Edited by Carnegie Senior Fellow Michael Pettis based in Beijing, China Financial Markets offers monthly insights into income inequality, market structures, and other issues affecting China and other global economies. A noted expert on China’s economy, Pettis is a professor of finance at Peking University’s Guanghua School of Management, where he specializes in Chinese financial markets.