Post-crisis challenges
Confronting capitalism in the 2010s
in Communists constructing capitalism
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Chapter Six traces how the 2008-9 financial crisis precipitated further steps towards developing technocratic and rationalised financial regulatory institutions under the auspices of continued overarching CCP authority. The Chinese financial system was faced with the immediate economic imperatives of supporting growth and the discursive discrediting of an Anglo-American regulatory model. These combined in a crisis response that directly enmeshed financial institutions ever closer to the heart of the Chinese political economy rather than seeking to insulate the real economy and public finances from the private financial sector, and the emergence of a shadow banking system that both supported and posed risks to financial stability. At the same time, shadow banking was giving rise to new technology-driven financial institutions and channels of credit intermediation, which are now increasingly being brought under CCP control and authority, further deepening the conjoined processes of market development and political consolidation. Counterintuitively, the very forces behind deeper and broader financial liberalization are now also consolidating the CCP’s overall legitimacy and ruling capacity.

Communists constructing capitalism

State, market, and the Party in China’s financial reform

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