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Challenging global neoliberalism?: the global political economy of China's capital controls

Mattias Vermeiren UGent and Sacha Dierckx UGent (2012) THIRD WORLD QUARTERLY. 33(9). p.1647-1668
abstract
This article engages with critical IPE scholars who have examined the rise of China and its impact on the neoliberal world order by analysing whether China poses a challenge to the neoliberal norm of free movement of capital. We argue that China’s capital control regime is marked by a contradiction between its domestic social relations of production and its global geo-economic ambitions. On the one hand, the key raison d’être of China’s capital controls is to protect and consolidate an investment-led accumulation regime that redistributes income and wealth from Chinese workers to its state-owned enterprise sector. Dismantling these controls would result in changing social relations of production that would not necessarily benefit Chinese industrial and financial capital. On the other hand, China’s accumulation regime has found itself increasingly constrained by the dynamics of US monetary hegemony, making the contestation of US structural monetary power a key global geo-economic ambition of China’s ruling elites. In this regard, China would have to challenge the dominance of the US dollar by promoting the international role of the renminbi and developing liquid financial markets. Since China would have to abolish its capital controls in order to achieve this, there is a plain contradiction between its domestic and global objectives. A good understanding of this contradiction is necessary in order to be able to assess whether China will be capable of challenging the neoliberal world order in general and the norm of free movement of capital in particular.
Please use this url to cite or link to this publication:
author
organization
year
type
journalArticle (original)
publication status
published
subject
keyword
China, international political economy, capital controls, CRISIS, MODEL, POWER, WORLD, TRANSFORMATION, GLOBALIZATION, PERSPECTIVE, SOCIALISM, TRANSITION, SYSTEM
journal title
THIRD WORLD QUARTERLY
Third World Q.
volume
33
issue
9
pages
1647 - 1668
Web of Science type
Article
Web of Science id
000310316900006
JCR category
PLANNING & DEVELOPMENT
JCR impact factor
0.75 (2012)
JCR rank
33/55 (2012)
JCR quartile
3 (2012)
ISSN
0143-6597
DOI
10.1080/01436597.2012.720841
language
English
UGent publication?
yes
classification
A1
copyright statement
I have transferred the copyright for this publication to the publisher
id
2971100
handle
http://hdl.handle.net/1854/LU-2971100
date created
2012-08-11 14:18:55
date last changed
2014-04-28 13:12:33
@article{2971100,
  abstract     = {This article engages with critical IPE scholars who have examined the rise of China and its impact on the neoliberal world order by analysing whether China poses a challenge to the neoliberal norm of free movement of capital. We argue that China{\textquoteright}s capital control regime is marked by a contradiction between its domestic social relations of production and its global geo-economic ambitions. On the one hand, the key raison d{\textquoteright}{\^e}tre of China{\textquoteright}s capital controls is to protect and consolidate an investment-led accumulation regime that redistributes income and wealth from Chinese workers to its state-owned enterprise sector. Dismantling these controls would result in changing social relations of production that would not necessarily benefit Chinese industrial and financial capital. On the other hand, China{\textquoteright}s accumulation regime has found itself increasingly constrained by the dynamics of US monetary hegemony, making the contestation of US structural monetary power a key global geo-economic ambition of China{\textquoteright}s ruling elites. In this regard, China would have to challenge the dominance of the US dollar by promoting the international role of the renminbi and developing liquid financial markets. Since China would have to abolish its capital controls in order to achieve this, there is a plain contradiction between its domestic and global objectives. A good understanding of this contradiction is necessary in order to be able to assess whether China will be capable of challenging the neoliberal world order in general and the norm of free movement of capital in particular.},
  author       = {Vermeiren, Mattias and Dierckx, Sacha},
  issn         = {0143-6597},
  journal      = {THIRD WORLD QUARTERLY},
  keyword      = {China,international political economy,capital controls,CRISIS,MODEL,POWER,WORLD,TRANSFORMATION,GLOBALIZATION,PERSPECTIVE,SOCIALISM,TRANSITION,SYSTEM},
  language     = {eng},
  number       = {9},
  pages        = {1647--1668},
  title        = {Challenging global neoliberalism?: the global political economy of China's capital controls},
  url          = {http://dx.doi.org/10.1080/01436597.2012.720841},
  volume       = {33},
  year         = {2012},
}

Chicago
Vermeiren, Mattias, and Sacha Dierckx. 2012. “Challenging Global Neoliberalism?: The Global Political Economy of China’s Capital Controls.” Third World Quarterly 33 (9): 1647–1668.
APA
Vermeiren, M., & Dierckx, S. (2012). Challenging global neoliberalism?: the global political economy of China’s capital controls. THIRD WORLD QUARTERLY, 33(9), 1647–1668.
Vancouver
1.
Vermeiren M, Dierckx S. Challenging global neoliberalism?: the global political economy of China’s capital controls. THIRD WORLD QUARTERLY. 2012;33(9):1647–68.
MLA
Vermeiren, Mattias, and Sacha Dierckx. “Challenging Global Neoliberalism?: The Global Political Economy of China’s Capital Controls.” THIRD WORLD QUARTERLY 33.9 (2012): 1647–1668. Print.