Much has been made of China’s recent internal and external rebalancing.

Experts disagree how soon rising consumption can replace investment as an engine of economic growth in China, a question that will determine whether or not China undergoes a painful rebalancing.

Since opening up to the world in 1979, China’s economy has grown by an astonishing 10 percent, on average, in real terms every year. But many observers have pointed out that China’s recent “rise” is more aptly deemed a “return” to the preeminence it enjoyed before the eighteenth century.

While China remains an engine of growth in an unsettled global economy, it also faces many challenges, including high inflation, the potential of a housing market bubble, and volatile global liquidity conditions.

With China leading the way, most Asian economies are experiencing rapid growth and rising income levels. However, there is a risk of an overheating economy with such a rapid trajectory—as seen in rising inflation rates in many countries.

The ninth debate in Carnegie's "Reframing China Policy" debate series, focused on China's financial sector

How high – and how fast – is China’s trade moving up the technology ladder?  What are the causes and policy implications for China and the U.S. of China’s increasing export sophistication? On September 26, the Carnegie Endowment and the John L. Thornton China Center of the Brookings Institution co-sponsored a discussion with three researchers from the US and China on these controversial topics.

Carnegie’s Albert Keidel presented a summary of his working paper on development finance in China.  Nicholas Lardy (Institute for International Economics) and Eswar Prasad (IMF) commented on the paper and Pieter Bottelier (former Mission Chief of the World Bank) moderated the discussion.

A major two-day conference in September explored a wide range of questions related to China's foreign relations and political and economic development.