Published in The Treasurer
It’s London’s dream to become the Western hub for offshore renminbi trading but what will this mean for treasurers? asks Sally Percy
Let’s take a moment to imagine China in 20 years’ time. It is the powerhouse of the world, with an economy that is twice as large as the US economy, and it accounts for 24% of global output, up from 9% today.
It has a commercial banking system with interest rates set by market forces and a robust legal and supervisory infrastructure to underpin financial stability. Equal opportunities and social security are available to all. It has a strong fiscal system with properly financed local governments, world-class universities and resource-efficient industries. It is an active participant in world affairs.
Today, these are merely predictions made in reports by Standard Chartered and the World Bank, but they paint a good picture of what China could become if it can jump the hurdles it faces and grow as successfully in the next two decades as it has in the past three.
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