The PBOC leads the way to build up a sustainable new economic structure in China via supporting green finance /Central Banking, 8/4/2021/.
Between 1980 and 2020 China had a historically unique and highly successful export-led economic development based on cheap and skilled labor, FDIs, innovative production, huge public investments in infrastructure, large private investments in housing and smart government planning.
The new turn of U.S. grand strategy will diminish the markets of this former convergence path and China has already started the “Great Restructuring” of its economy. It might take two decades to do the job and finally China will emerge as the single most competitive economy in a good deal of high-tech industries globally.
In order to accelerate the transition from the last forty years’ path to the intensive growth model of the future the PBOC rightly supports financial opening, the renminbi internationalization, the building of a green financing system and also rightly extends tougher regulation of crypto assets.
The new chapter of the rise of China has already started.
Governor Matolcsy, MNB, the Central Bank of Hungary